Where do I take the 10,200 dollar deduction on my unemployment compensation from the new passed Covid bill?

Forum|Forum|5 years ago
March 6, 2021
10 replies
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DoninGA

Level 15

Nothing has passed Congress or signed by the President so there has been no changes to the tax code.

The legislation only would affect a federal tax return. The various states that tax unemployment compensation would have to make changes to their own tax codes and only if they so desire.

TurboTax nor any other tax preparation software company can do anything until After the IRS has written the rules and regulations after passage of legislation which changes the tax code.

frownie56

Level 2

The law has passed and was signed by the president so where do you get to $10,200 deduction from unemployment? I've completed my federal taxes but have not filed and I would like to go back and apply that deduction. How do I do that?

DoninGA

Level 15

@frownie56 wrote:

The law has passed and was signed by the president so where do you get to $10,200 deduction from unemployment? I've completed my federal taxes but have not filed and I would like to go back and apply that deduction. How do I do that?

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.

See this TurboTax support FAQ for information on the American Rescue Plan - https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859