topic How do I account for the Unemployment Compensation Exclusion of $10,200 which just passed last week? in Get your taxes done using TurboTax

How do I account for the Unemployment Compensation Exclusion of $10,200 which just passed last week?

wmbkoon — Mon, 15 Mar 2021 19:08:08 GMT

A new law passed on March 11, which provides that the first $10,200 of unemployment compensation shall be tax free. The steps are available at
https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation
but this site does not appear to accommodate this exclusion. How do I proceed?

Re: How do I account for the Unemployment Compensation Exclusion of $10,200 which just passed last week?

DoninGA — Mon, 15 Mar 2021 19:09:51 GMT

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: How do I account for the Unemployment Compensation Exclusion of $10,200 which just passed last week?

xmasbaby0 — Mon, 15 Mar 2021 19:09:55 GMT

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.

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve-already-filed-my-taxes/00/2081053

Please read this very recent news from the IRS:

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

Re: How do I account for the Unemployment Compensation Exclusion of $10,200 which just passed last week?

gfmaurer — Tue, 16 Mar 2021 19:12:03 GMT

I just found these updated, detailed instructions from IRS for calculating and reporting the Unemployment Compensation Exclusion: https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation

Hopefully, TTax has seen this also and will provide additional information for entering in TTax to the community. Also, be aware that your state may not mirror the UCE for State income tax, so you may need to adjust you state return if you are filing one.

Re: How do I account for the Unemployment Compensation Exclusion of $10,200 which just passed las...

PattiF — Tue, 16 Mar 2021 19:21:23 GMT

TurboTax is working hard to have this updated as soon as possible. Here is some information about this and links to be notified when the forms are ready.

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: How do I account for the Unemployment Compensation Exclusion of $10,200 which just passed las...

fanfare — Tue, 16 Mar 2021 19:56:56 GMT

you have to be careful with that procedure.

It changes your AGI and I' wonder if that was the intent of the Congress.

I have no plans to wade through the tax bill.