Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 12, 2021 1:28:36 PM

How do I adjust my taxes from the unemployment tax deferral of $10,200 through The American Rescue Plan Act 2021?

0 6 676
6 Replies
Level 15
Mar 12, 2021 1:30:55 PM

Wait until the IRS issues procedures for this (as well as for all the other provisions of the new tax law).

Not applicable
Mar 15, 2021 6:29:40 AM

When do you think these IRS procedures will appear? I'm slightly annoyed as I typically file early and rely on my refund to live.

Level 15
Mar 15, 2021 6:33:35 AM


@Anonymous wrote:

When do you think these IRS procedures will appear? I'm slightly annoyed as I typically file early and rely on my refund to live.


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

New Member
Mar 15, 2021 6:37:39 AM

They are projecting end of this month

New Member
Mar 25, 2021 12:37:55 AM

how do adjust my taxes from unemployment tax deferral of $10200

Expert Alumni
Mar 25, 2021 9:35:11 AM

Be sure to do the current updates to the software.

 

TurboTax has announced that it is updating their online software to account for a new tax break on unemployment benefits received in 2020. 

 

If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here. 

 

The IRS strongly urges taxpayers not to file amended returns related to the new legislative provisions or take other unnecessary steps at this time. The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable.

 

TurboTax is developing the software required to process all of the new conditions.