topic When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment. Will TurboTax automatically update my return if I haven't filed yet? in Get your taxes done using TurboTax

When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment. Will TurboTax automatically update my return if I haven't filed yet?

chele-romine — Thu, 11 Mar 2021 16:42:01 GMT

I am claimed as a dependent on my parent's taxes. I file single. I collected $10,700 in unemployment and currently I am going to be taxed on the whole amount. Will the new law, allowing the first $10,200 to be "forgiven" automatically be reflected in TurboTax?

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

JohnB5677 — Thu, 11 Mar 2021 18:41:19 GMT

If you are a dependent and filed your return, do not do anything yet.

The IRS will issue guidance about what to do if you already filed. Making part of your unemployment tax-free would increase your refund or reduce your tax. Wait until the IRS has issued the instructions before you do anything.

You will not get a new 1099-G. The 1099-G reports the full amount of unemployment benefits that were paid to you, whether or not it is all taxable. The 1099-G does not show how much of it is taxable or not taxable. Any adjustment of the taxable amount will be made on your federal tax return, or on an amended federal tax return, or by the IRS.

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

t-492 — Fri, 12 Mar 2021 16:07:59 GMT

So, if you haven't filed yet, will Turbo Tax update the new amount minus $10,200?

It's still not reflecting it on filing screen.

I think that's what a lot of people are wondering.

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

DoninGA — Fri, 12 Mar 2021 16:08:48 GMT

@t-492 wrote:

So, if you haven't filed yet, will Turbo Tax update the new amount minus $10,200?

It's still not reflecting it on filing screen.

I think that's what a lot of people are wondering.

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.

See this TurboTax support FAQ for information on the American Rescue Plan - https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

t-492 — Fri, 12 Mar 2021 16:13:11 GMT

Thanks for clarifying!

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

MisfitLeon138 — Mon, 15 Mar 2021 00:24:25 GMT

So whenever it goes into effect will be get a email notifying us , will it adjust automatically or will we have to constantly check back and see if we can amend. I've already filed and have a scheduled payment for state taxes.

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

JeffreyR77 — Mon, 15 Mar 2021 00:44:00 GMT

TurboTax is working with the IRS to determine the process to handle this situation. The guidance at this point is to NOT amend tax returns.

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

ravenn — Mon, 15 Mar 2021 22:20:16 GMT

Sorry I missed it. When specifically will Intuit be up to date on the new tax changes just initiated? Before April 15th or after? This is really just a software change. Shouldn't take more than 14 days.

Please advise date.

Randy

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

DawnC — Mon, 15 Mar 2021 22:31:28 GMT

Unfortunately, there is no specific date to give. Engineers are working hard to update TurboTax for the new legislation. If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here. @ravenn

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

smorini — Tue, 16 Mar 2021 20:42:29 GMT

If TurboTax is not going to be done by April 15 to have this in, then please explain how to update the schedule 1, since it is not letting me do this.

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

DoninGA — Tue, 16 Mar 2021 20:43:35 GMT

@smorini wrote:

If TurboTax is not going to be done by April 15 to have this in, then please explain how to update the schedule 1, since it is not letting me do this.

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: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

smorini — Tue, 16 Mar 2021 22:30:08 GMT

Thank you, I did finally figure out from the IRS, just had to work Turbo Tax to get to the correct worksheet.

Sandra

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

RobertGriffith — Thu, 18 Mar 2021 05:20:50 GMT

The legislation has passed, the IRS has written the rules and procedures are posted at irs.gov. Other tax softwares have already updated to account for it. What's the holdup with TurboTax?

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

JohnB5677 — Thu, 18 Mar 2021 13:28:16 GMT

If you've filed your return, do not do anything yet. If you haven't filed you should file as usual, and include the full amount of the 1099-g..

The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of economic impact payments, including the unemployment benefit will be forthcoming.

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.

For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return.

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

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

dm1979 — Sat, 20 Mar 2021 16:05:51 GMT

When will the Turbo Tax updates be available? Would like to submit my taxes asap.

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

ToddL99 — Sat, 20 Mar 2021 16:34:28 GMT

We’re working hard to keep TurboTax up to date with the latest tax changes based on instructions we receive from the IRS.

To get updates on our progress, go to one of the following links to sign-up:

For customers who have already filed: How do I get the new unemployment benefits if I’ve already filed my taxes?

For customers who have not yet filed: How do I claim the new unemployment benefits in TurboTax?

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment. Will TurboTax automatically update my return if I haven't filed yet?

margecassidy — Tue, 23 Mar 2021 23:58:12 GMT

my turbo tax is still taxing unemployment. How do I get to not tax it.

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

LindseyLO — Wed, 24 Mar 2021 00:11:45 GMT

A Guide to Unemployment and taxes has been provided for you by clicking here. This will guide you through and explain how to file.

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

rander12a — Wed, 24 Mar 2021 01:05:09 GMT

As of 8:03 PM my Turbo Tax has still not updated! Any reasons Why?

Re: When the President signs the new Covid Bill it will forgive the first $10,200 of unemployment...

macuser_22 — Wed, 24 Mar 2021 01:12:16 GMT

The online version are updated the weekly desktop update is scheduled for Thursday 3/25 late afternoon.