topic How can I apply the unemployment tax credit the 10,200 to my taxes in Get your taxes done using TurboTax

How can I apply the unemployment tax credit the 10,200 to my taxes

harveysparkey1 — Sat, 13 Mar 2021 05:19:34 GMT

Re: How can I apply the unemployment tax credit the 10,200 to my taxes

macuser_22 — Sat, 13 Mar 2021 05:20:33 GMT

The $10,200 unemployment retroactive to 2020 was just signed into law. Now the IRS is responsible for writing regulations and rules for claiming it. Once the rules are written then if new forms will be needed the IRS must develop those. Then get the form specifications to software providers to develop their software. The IRS then must conduct tests with the software providers to be sure it is all comparable.

That process can take several weeks to several months. Do not look for anything soon.

(As a reference, the COVID CARES Act was passed in March of 2020 and the IRS released the forms to report it in February 2021 - 11 months later.)

Re: How can I apply the unemployment tax credit the 10,200 to my taxes

rosanne4916 — Sat, 13 Mar 2021 20:40:53 GMT

Since the program does not effect the 10,200 unemployment credit, should I wait to file?

Re: How can I apply the unemployment tax credit the 10,200 to my taxes

macuser_22 — Sat, 13 Mar 2021 20:45:55 GMT

Since the IRS just releasd the method of reporting it, I would wait.

The $10,200 unemployment retroactive to 2020 was just signed into law. Now the IRS is responsible for writing regulations and rules for claiming it.

The IRS has released new instructions for reporting this that should not take very long to incorporate.

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

Re: How can I apply the unemployment tax credit the 10,200 to my taxes

msdaweeks — Fri, 19 Mar 2021 14:24:41 GMT

I haven't filed yet and if I am unable, before the filing deadline, to deduct the 10,200 from my taxes, my tax bill will be 2,000.

Re: How can I apply the unemployment tax credit the 10,200 to my taxes

msdaweeks — Fri, 19 Mar 2021 14:34:42 GMT

I think the problem solved. Some posted this link:

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

It gives detailed instructions on Unemployment Compensation Exclusion Worksheet - Schedule 1, Line 8. Copy and paste the above link to get the information. I haven't read further but I am not sure how it will be handled if you have already filed. The only reason I waited was the 2,000 tax bill I was facing (and wondering where the $$$ would be coming from!!)

I hope this helps all of you.

Re: How can I apply the unemployment tax credit the 10,200 to my taxes

Irene2805 — Fri, 19 Mar 2021 14:55:29 GMT

If you haven't filed your tax return yet, we expect TurboTax to be updated later today (Friday, 3/19) to include the new federal tax relief calculations on unemployment benefits.

If you have already filed your return, please see this TurboTax Help article: How do I get the new unemployment benefits if I’ve already filed my taxes?

@msdaweeks

Re: How can I apply the unemployment tax credit the 10,200 to my taxes

Enid R — Wed, 24 Mar 2021 21:15:30 GMT

Has the turbo tax desktop been updated to include the unemployment tax credit?

Re: How can I apply the unemployment tax credit the 10,200 to my taxes

JotikaT2 — Wed, 24 Mar 2021 21:23:28 GMT

Not yet. Please use the link below to be notified when the desktop program is updated for the latest changes.

TurboTax email notification for unemployment updates