When will Turbotax update to reflect the tax relief on the first $10200 of unemployment benefits?

Forum|Forum|5 years ago
March 11, 2021
5 replies
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MinhT1

Level 15

The new ARP bill has exempted from taxation up to $10,200 of unemployment benefits received in 2020.

However, this bill has just been signed on March 11. Please be patient. The IRS will provide guidance within two to three weeks on what taxpayers need to do. And TurboTax will always timely assist their customers.

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Ajax-123

Level 2

Isn't this just a matter of subtracting the $10,200 for the amount entered for unemployment? If not should that at least give one an idea of what their tax liability should look like with this change?

j71942

Level 2

Not entirely. If a person had withholding for income tax from the unemployment compensation [UC}, then the amount of UC needs to be entered along with the withheld taxes and then TT needs to determine the UC to be non-taxable under the new law but credit the taxes withheld as payments, just like other withheld taxes.

SweetieJean

Alumni - Champ

There is also the issue of State returns, as some states tax UE comp, but may not yet have decided whether to do the same as Federal. In any case, the IRS (and states, as applicable) must approve TT's programming changes before they can be released.

Ajax-123

Level 2

So it's just a waiting game until TT can update their software? Also isn't the 3rd stimulus checks dependent on one's return, if so then that will get delayed as well?