topic Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax? in Get your taxes done using TurboTax

Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

andrewvlva — Mon, 15 Mar 2021 18:10:44 GMT

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

PattiF — Mon, 15 Mar 2021 18:27:47 GMT

If you have already filed your taxes:

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020. The IRS will provide additional guidance about what you need to do to take advantage of this relief if you already filed your 2020 tax return.

If you’d like to be updated when the information becomes available, please sign up here.

If you have not yet filed your taxes:

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020. Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment.

If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here.

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

kaseylai — Tue, 16 Mar 2021 00:55:13 GMT

Guys - they told us how on 3/13/21:

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation?fbclid=IwAR1cQeizn34tFKx94mWcOSBMBKFW0KGU_8PcMYxTzeqUYzY17pkBqiap_fo

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

DawnC — Tue, 16 Mar 2021 01:08:32 GMT

If you filing on paper, you can use the irs procedure to exclude the income. If you are e-filing using TurboTax, you will need to wait until the software has been updated to reflect the new law.

If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here. @kaseylai

Related Information:

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

dtzak — Tue, 16 Mar 2021 21:17:53 GMT

DawnC - when will TT be updated. Simple question.

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

DoninGA — Tue, 16 Mar 2021 21:19:22 GMT

@dtzak wrote:

DawnC - when will TT be updated. Simple question.

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: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

jpmcnaul — Fri, 19 Mar 2021 18:17:16 GMT

H&R Block programmed their software and online systems on the 18th, but Turbotax is still showing figures in both the software and the online system that doesn't reflect any programming for the unemployment exemption. Why is TT so slow in updating its products?

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

Irene2805 — Fri, 19 Mar 2021 18:30:59 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. [Releases are usually pushed later in the day.]

The adjustment to the taxable unemployment benefits will be on Schedule 1, line 8 of the 1040.

If you have already filed your return, the IRS has stressed to NOT amend at this time. We do not yet have updated guidance for those who have filed their returns. Please see this TurboTax Help article: How do I get the new unemployment benefits if I’ve already filed my taxes? It has the latest information and contains a link for you to sign up to be notified when changes occur.

@jpmcnaul

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

jpmcnaul — Sat, 20 Mar 2021 14:44:45 GMT

It's the 20th now and the desktop version of TT still hasn't updated for unemployment issue.

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

ToddL99 — Sat, 20 Mar 2021 15:06:57 GMT

That is correct - the desktop version of TurboTax still hasn't updated for unemployment issue.

According to @DoninGA "The update for the UC exclusion was made available for the TurboTax online editions. It is not currently available for the TurboTax desktop CD/Download editions."

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: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

jpmcnaul — Sat, 20 Mar 2021 23:38:19 GMT

Since most people who use the online version are using the free file and most if not all people who use the desktop versions paid $30-$100 for the programs, you'd think TT would prioritize their paid base and do that update first. Not good.

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

dfslater — Wed, 24 Mar 2021 13:12:30 GMT

You cannot "override" the program. Therefore until TT updates their program we are all screwed.

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

Irene2805 — Wed, 24 Mar 2021 13:24:04 GMT

We are working on incorporating the changes to TurboTax CD/DOWNLOAD as quickly as we can. You can sign up here to receive an email notification when it has been completed.

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

Tim1234 — Wed, 24 Mar 2021 14:57:23 GMT

Irene

Why is it that those that file online with TurboTax can get their unemployment amount adjusted but not the PAID version? Doesn't make any sense at all. All I get when I call is a runaround blaming everyone else.

Why can your competitors make the adjustments but TurboTax can't????? Are your competitors that much better than TurboTax? I'm starting to wonder. And I've used TurboTax for YEARS!!!!

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

foulweathersal — Wed, 24 Mar 2021 23:31:34 GMT

I am filing online and still cannot get the deduction. Software is not fixed.

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

gloriah5200 — Thu, 25 Mar 2021 00:06:56 GMT

IRS just made some additional announcements and is still making changes on the determination of how the unemployment exclusion is to be completed on the tax returns, updating their systems and working with the software developers. We will update the software as soon as all the details are known.

Re: Unemployment Exemption answer(?), should I "file as usual" or "wait for IRS to issue instructions"?

If you haven't filed you should hold off. The software updates should be coming out soon.

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.

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

Please refer to the following link for additional information:

What should I do about the unemployment exemption

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

mbmsbea — Sun, 28 Mar 2021 01:51:56 GMT

let me know when the updsate is available for the , tax relief on unemployment

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

VolvoGirl — Sun, 28 Mar 2021 01:59:58 GMT

Both the online versions and Desktop programs have been updated for unemployment.

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

mbmsbea — Sun, 28 Mar 2021 20:31:30 GMT

How will

i know it’s done on my tax return after I complete it

Re: Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

gloriah5200 — Sun, 28 Mar 2021 23:02:23 GMT

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, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov.

The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.

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.

For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.

If you’ve already filed your 2020 return, you should not do anything. The IRS will refigure your taxes and send any refund amount directly to you. Go here for more unemployment updates as they become available.

The IRS website states:

If you haven’t filed your taxes, and you qualify for the new benefit, the IRS will be releasing a worksheet for paper filers. The agency also said it’s working with tax software companies to update their current tax software so that you can determine how to report unemployment income on your 2020 tax return.

If you haven’t filed your 2020 tax returns yet but received unemployment last year, it may be best to wait before submitting your taxes to see how the agency’s forthcoming instructions will affect you.

With roughly two months until the new tax day, you still have time and waiting might be the smartest move at the moment.

Without knowing how IRS is going to determine the handling on a software developer's return, we cannot tell you what to look for. Hopefully it will be soon.