Will Congress' recently approved tax waiver on up to $10,200 of unemployment insurance benefits apply to those who filed their returns but has not yet been processed?

Forum|Forum|5 years ago
March 11, 2021
19 replies
121 views

I transmitted my return, got my return accepted February 17, my "estimated federal refund date" was yesterday March 11th. Today upon checking the IRS Where's my refund tool, it tells me: "Your tax return is still being processed. A refund date will be provided when available."

When my return is processed, will my $10,200 of taxable Unemployment income be waived? Or will I file an amended return?

And lastly, if an amended return would have to be filed and I already received my refund as direct deposit will I be sent just the difference?

TurboTax Premier Online

Best answer by MinhT1

The new proposed bill is expected to exempt from taxation up to $10,200 of unemployment benefits received in 2020.

However, the bill is not enacted into law yet. Please be patient. When it becomes law, the IRS will provide guidance within two to three weeks on what taxpayers need to do. And TurboTax will always timely assist their customers.

MinhT1Answer

Level 15

The new proposed bill is expected to exempt from taxation up to $10,200 of unemployment benefits received in 2020.

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mgosswein2

Level 2

I am completing my daughters tax return for 2020 tax year and she is getting taxed on her unemployment income she earned in 2020. Why is that? Up to 10,200 should be non-taxable but my updated TurboTax Deluxe product does not reflect this.

DoninGA

Level 15

@mgosswein2 wrote:

I am completing my daughters tax return for 2020 tax year and she is getting taxed on her unemployment income she earned in 2020. Why is that? Up to 10,200 should be non-taxable but my updated TurboTax Deluxe product does not reflect this.

The software is scheduled to be updated on 03/19 to include the unemployment compensation exclusion.

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