topic New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in 2021 will be nontaxable. Will TurboTax be reprograming to account for this? in Get your taxes done using TurboTax

New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in 2021 will be nontaxable. Will TurboTax be reprograming to account for this?

Spinner010 — Wed, 10 Mar 2021 19:07:51 GMT

This is included in the most recent $1.9 trillion bill passed by the senate. If TurboTax will not e reprograming then what should we do?

Re: New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in 2021 will be nontaxable. Will TurboTax be reprograming to account for this?

DoninGA — Wed, 10 Mar 2021 19:09:05 GMT

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.

Re: New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in 2021 will be nontaxable. Will TurboTax be reprograming to account for this?

xmasbaby0 — Wed, 10 Mar 2021 19:09:10 GMT

The stimulus bill has not even been signed into law yet.

It can take weeks to several months or more for the changes to be made to tax software. First the IRS has to change its forms. The tax software has to be changed; the IRS has to test and approve of the software. Do not expect changes in the software to happen quickly. TurboTax may have more information in the near future AFTER the bill is signed into law, and some more details emerge about how Congress and the IRS will implement the changes.

Re: New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in 2021 will be nontaxable. Will TurboTax be reprograming to account for this?

SweetieJean — Wed, 10 Mar 2021 19:11:49 GMT

Nothing can be done until the full Congress passes the bill; the President signs it into law; the IRS develops procedures for implementation; TT programs and tests the changes, and then gets the IRS to approve them. So stay tuned.,

Re: New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in 2021 will be nontaxable. Will TurboTax be reprograming to account for this?

MakiaWilliams37 — Mon, 15 Mar 2021 14:41:22 GMT

Legislation was signed into law last Thursday and the IRS has already begun to update their website. Is turbotax currently working on reconfiguring their program to account for this and when might Turbotax expect for this to be ready?

Re: New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in 2021 will be nontaxable. Will TurboTax be reprograming to account for this?

DoninGA — Mon, 15 Mar 2021 14:47:49 GMT

@MakiaWilliams37 wrote:

Legislation was signed into law last Thursday and the IRS has already begun to update their website. Is turbotax currently working on reconfiguring their program to account for this and when might Turbotax expect for this to be ready?

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

Re: New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in 2021 will be nontaxable. Will TurboTax be reprograming to account for this?

gregchiro2021 — Tue, 16 Mar 2021 04:01:01 GMT

IRS has forms ready...lets see how long TT takes to update...

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation

Re: New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in...

SusanY1 — Tue, 16 Mar 2021 04:14:58 GMT

We are currently working on updates.

For more information, and to sign up to be notified when the updates are ready, please see: New Unemployment Benefits in TurboTax.

Re: New unemployment tax decision. The first $10,200 of unemployment benefits paid in 2020 and in...

gregchiro2021 — Tue, 16 Mar 2021 04:32:32 GMT

thanks for the update Susan