topic If you received unemployment, will there be a tax break? in Get your taxes done using TurboTax

If you received unemployment, will there be a tax break?

alisleo — Mon, 15 Mar 2021 14:20:38 GMT

Is the state of Florida giving a tax break if you received unemployment in 2020

Re: If you received unemployment, will there be a tax break?

xmasbaby0 — Mon, 15 Mar 2021 14:29:35 GMT

Florida has no state income tax. So you do not need a tax break from FL. Your federal return will be affected by the change for unemployment.

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859#U1393859

You are among millions who have now been affected by a mid-tax season change in the tax law. Patience will be necessary.

TurboTax will update the software for the unemployment but there is no timeline yet.

If you have not e-filed yet—-wait. And if you already e-filed and want to amend for this—WAIT.

Please read this very recent news from the IRS:

https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

Re: If you received unemployment, will there be a tax break?

ToddL99 — Mon, 15 Mar 2021 14:37:01 GMT

The state of FL does not have an income tax - any unemployment you receive while a resident of FL is tax-free.

The federal government just passed a law that exempts up to $10,200 of unemployment compensation from federal tax (for households making less than $150,000).

As soon as the IRS issues instructions on how to report newly-exempt 2020 unemployment payments, TurboTax will make the necessary updates to its programs. Until those changes are made, you have two options:

1. File now and amend your return later, after updates have been made.

2. File after IRS instructions are released and the programs have been updated.