topic When and how will we be exempt from paying federal taxes on the first $10,000 from unemployment? in State tax filing

When and how will we be exempt from paying federal taxes on the first $10,000 from unemployment?

izzyishh — Sun, 14 Mar 2021 17:12:13 GMT

this was included in the most recent relief bill

Re: When and how will we be exempt from paying federal taxes on the first $10,000 from unemployment?

xmasbaby0 — Sun, 14 Mar 2021 17:29:54 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.

Re: When and how will we be exempt from paying federal taxes on the first $10,000 from unemployment?

KathrynG3 — Sun, 14 Mar 2021 17:34:12 GMT

When: The update will occur as soon as possible. If you have not yet filed, wait for this update to be evidenced by watching the Refund Tracker to be increased as @xmasbaby0 states. If you have already filed, do not worry. The IRS will recalculate the tax balance and refund any portion due.

How: The IRS intends to work with tax software companies to add an additional worksheet.

See: IRS Statement - American Rescue Plan Act of 2021

New Exclusion of up to $10,200 of Unemployment Compensation

Re: When and how will we be exempt from paying federal taxes on the first $10,000 from unemployment?

xmasbaby0 — Sun, 14 Mar 2021 17:45:57 GMT

@KathrynG3 Woohoo!!!!! Thanks for posting that news! This will really help with all the questions!!!!