New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in 2021 will be nontaxable. Will TurboTax be reprograming to account for this?

Forum|Forum|5 years ago
March 10, 2021
8 replies
57 views

This is included in the most recent $1.9 trillion bill passed by the senate. If TurboTax will not e reprograming then what should we do?

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DoninGA

Level 15

After the legislation has passed Congress and after the President has signed the legislation and after the IRS has written the rules, regulations and procedures. And after the IRS has changed any forms or schedules to accept the tax code changes. And after the IRS has approved the changes in the TurboTax program that apply to the tax code changes, then it will be available for the users of the tax preparation software.

This can take anywhere from several weeks to several months before it becomes available.

xmasbaby0

Level 15

The stimulus bill has not even been signed into law yet.

It can take weeks to several months or more for the changes to be made to tax software. First the IRS has to change its forms. The tax software has to be changed; the IRS has to test and approve of the software. Do not expect changes in the software to happen quickly. TurboTax may have more information in the near future AFTER the bill is signed into law, and some more details emerge about how Congress and the IRS will implement the changes.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

SweetieJean

Alumni - Champ

Nothing can be done until the full Congress passes the bill; the President signs it into law; the IRS develops procedures for implementation; TT programs and tests the changes, and then gets the IRS to approve them. So stay tuned.,

MakiaWilliams37

Level 2

Legislation was signed into law last Thursday and the IRS has already begun to update their website. Is turbotax currently working on reconfiguring their program to account for this and when might Turbotax expect for this to be ready?

DoninGA

Level 15

@MakiaWilliams37 wrote:

Legislation was signed into law last Thursday and the IRS has already begun to update their website. Is turbotax currently working on reconfiguring their program to account for this and when might Turbotax expect for this to be ready?

See this TurboTax support FAQ for information for the unemployment compensation exclusion - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

Also see this IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021