topic When will TT change their software to reflect the new stimulus act changes for 2020? Unemployment shouldn't be taxable for MFJ earning under $150K! in Get your taxes done using TurboTax

When will TT change their software to reflect the new stimulus act changes for 2020? Unemployment shouldn't be taxable for MFJ earning under $150K!

richardfoti — Fri, 12 Mar 2021 13:28:00 GMT

Re: When will TT change their software to reflect the new stimulus act changes for 2020? Unemployment shouldn't be taxable for MFJ earning under $150K!

DoninGA — Fri, 12 Mar 2021 13:28:19 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.

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 will TT change their software to reflect the new stimulus act changes for 2020? Unemployment shouldn't be taxable for MFJ earning under $150K!

richardfoti — Sat, 13 Mar 2021 20:11:47 GMT

Thanks Champ! So if all this doesn't happen before April 15 and the deadline isn't extended, does that mean you have to pay the tax and file an amended return to get the refund?

Re: When will TT change their software to reflect the new stimulus act changes for 2020? Unemploy...

JeffreyR77 — Sun, 14 Mar 2021 16:48:58 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 will TT change their software to reflect the new stimulus act changes for 2020? Unemploy...

richardfoti — Mon, 15 Mar 2021 15:30:39 GMT

Thank you. While I understand, my relative wants her refund. Is there any harm in removing the newly untaxed Unemployment income from the return and filing it now (she takes the standard deduction with no income-based credits)?

Re: When will TT change their software to reflect the new stimulus act changes for 2020? Unemploy...

DoninGA — Mon, 15 Mar 2021 15:32:24 GMT

@richardfoti wrote:

Thank you. While I understand, my relative wants her refund. Is there any harm in removing the newly untaxed Unemployment income from the return and filing it now (she takes the standard deduction with no income-based credits)?

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