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?
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.
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.
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.
@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
03/20/21
You stated that the software would be updated on 03/19/21 to reflect the new unemployment. I have printed my return to mail it but have not mailed it. So I opened my return but it still does not reflect the change- I went in to make sure my updates are all applied and they are. So do I need to start my return over from scratch to get it to reflect the change or is there a way to correct this return from here?
Are you using the Desktop program? Only the Online version has been updated. Keep waiting for the Desktop program to update.
See this news story:
This news article does NOT state when Intuit will be updating the desktop version software with the updated unemployment tax break information. Why did you send me this article link? I obviously know the law and that it passed or I would not be asking for the update as well as you have already updated the online version so since I am using the desktop version I need to know a date that it is expected to update.
I am guessing that it will be in the scheduled 3/26 update. I doubt very much that they will have a special update for one item and force everyone to download and update software twice in a few days of each other.
the point of the article is that some people have already filed and you will be in that category tomorrow if you file today.
IRS is saying they will handle it with no further action on your part.
@fanfare wrote:
the point of the article is that some people have already filed and you will be in that category tomorrow if you file today.
IRS is saying they will handle it with no further action on your part.
However, there is no telling how long it will take the IRS to do that. The IRS commissioner testified in Congress Thursday that they are going to "attempt" to do it on their own for already filed tax returns. No telling how long that will take.
Doing it yourself on yiu own tax rerun adds it to the refund NOW. Wait for the update.
rationally that does not make sense. The "online version"and the desktop version should be one and the same - they both rely in updates from the internet. Are you 100% certain on that?
@mgosswein2 wrote:
rationally that does not make sense. The "online version"and the desktop version should be one and the same - they both rely in updates from the internet. Are you 100% certain on that?
Not the same at all. Online is simply a code change in TurboTax's OWN web server that they can done anytime.
Desktop updates must be complied and packaged for 4 different Windows versions and 4 different Mac versions. The Mac update is about a 220MB file that can take an hour to download on a slow internet connection (that many still have have to pay by the MB) and 1/2 hour or more to install. Too many updates is very time consuming and inconvenient for many desktop users.
Does anyone have the specific date/time when the Desktop Version updates will be made available?
looks like there is an update today as it queued up on my laptop version - we shall see if it includes the patch for tax free unemployment
Today's update does include the patch to correct the non-taxation of unemployment.
It does - I just downloaded it about 30 minutes ago and without doing anything it recalculated and took into account the $10,200 for unemployment.
The update for the unemployment benefits has been added to TurboTax CD/Download. Just enter the unemployment benefits reported to you on Form 1099-G (if you haven't already) and TurboTax will automatically subtract the $10,200.
Please make sure your version of TurboTax is up-to-date.
In TurboTax CD/Download, you will be prompted to download any updates available when you open the program. You can also update the program while you have it open by following these steps:
@ mgosswein2
@donw87 wrote:
has my return been filed
Did you e-file your tax return and was it accepted?
Only the IRS and your State control when and if a Federal or State tax refund is Approved and Issued.
You complete your tax return by finishing all 3 Steps in the File section. In Step 3, to e-file your tax return, you must click on the large Orange button labeled "
Transmit my returns now
".
After completing the File section and e-filing your tax return you will receive two emails from TurboTax. The first email when your tax return was transmitted and the second email when the tax return has either been accepted or rejected.
Note - Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund. Only the taxpayer listed on the tax return can obtain the status of a tax refund or a tax return.
To check the status of an e-filed return, open up your desktop product or log into your TurboTax Online Account. You can find your status within the TurboTax product.
If accepted by the IRS use the federal tax refund website to check the refund status - https://www.irs.gov/refunds
If accepted by the state use this TurboTax support FAQ to check the state tax refund status - https://ttlc.intuit.com/questions/1899433-how-do-i-track-my-state-refund
After the tax return has been Accepted by the IRS (meaning only that they received the return) it will be in the Processing mode until the tax refund has been Approved and then an Issue Date will be available on the IRS website.
See this IRS website for federal tax refund FAQ's - https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions
If over 21 days since being Accepted by the IRS and the tax refund is still Processing you can call the IRS and speak with an IRS agent concerning your tax refund.