topic The new stimulus bill passed which made it so $10,000 was deducted from unemployment income. Is the system updated for that yet? in Get your taxes done using TurboTax

The new stimulus bill passed which made it so $10,000 was deducted from unemployment income. Is the system updated for that yet?

maplestory5 — Fri, 19 Mar 2021 19:26:26 GMT

Re: The new stimulus bill passed which made it so $10,000 was deducted from unemployment income. Is the system updated for that yet?

margmayer — Fri, 19 Mar 2021 19:41:34 GMT

Turbo tax is not yet updated but you can enter the $10,200 deduction per person on Schedule 1, line eight as a negative number and put the notation UCE which stands for unemployment compensation exclusion.

Re: The new stimulus bill passed which made it so $10,000 was deducted from unemployment income. ...

MinhT1 — Fri, 19 Mar 2021 19:46:07 GMT

TurboTax is still waiting for IRS guidance before updating their program.

Please read this TurboTax Help topic for more information.

Re: The new stimulus bill passed which made it so $10,000 was deducted from unemployment income. ...

endlessender — Fri, 19 Mar 2021 20:09:08 GMT

Stop giving this non-answer saying they are "waiting on IRS guidance". It's not true. The guidance already exists as many have been pointing out for days now. The software is reportedly being updated. H and R Block report that they have already implemented the changes. So let's just stop with this "wait for guidance" non-answer.

Re: The new stimulus bill passed which made it so $10,000 was deducted from unemployment income. ...

HelenC12 — Fri, 19 Mar 2021 20:26:06 GMT

We expect TurboTax to be updated sometime today, Friday, March 19, 2021, to include the new federal tax relief calculations to exclude $10,200 of unemployment compensation. Sometimes the software change happens at midnight so don't worry if you don't see it right away.

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

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

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.