topic Unemployment tax in Deductions & credits

Unemployment tax

Zach1070 — Thu, 11 Mar 2021 14:44:46 GMT

I collected unemployment but did Not I have taxes withheld. I found my 220 taxes but I did not pay them yet I’m waiting till April 15 I just found out that the new stimulus package includes $10,200 of an appointment is tax free how is the IRS handling this Well I have to file an amended return

Re: Unemployment tax

MinhT1 — Thu, 11 Mar 2021 15:03:08 GMT

The new proposed bill is expected to exempt from taxation up to $10,200 of unemployment benefits received in 2020.

However, the bill is not enacted into law yet. Please be patient. When it becomes law, the IRS will provide guidance within two to three weeks on what taxpayers need to do. And TurboTax will always timely assist their customers.

Re: Unemployment tax

Lenardis88 — Thu, 11 Mar 2021 15:52:47 GMT

Do you know if you have already filed before this new 10,000 tax dedication went into effect, can you amend to get the credit?

Re: Unemployment tax

Zach1070 — Thu, 11 Mar 2021 16:07:35 GMT

yes but i will need guidance from irs which should happen within two weeks after the bill is signed into law

Re: Unemployment tax

howardk — Sat, 13 Mar 2021 18:22:03 GMT

Ok the new stimulus plan is now law. I've been unemployed most of 2020. I collected more that $ 24,000 in unemployment and paid no taxes on that amount. How do I enter the $ 10,200 tax exemption on my 1040.

Re: Unemployment tax

JotikaT2 — Sat, 13 Mar 2021 18:31:40 GMT

It is still being determined at this point by the IRS. Accordingly the newly passed legislation, the first $10,200 on unemployment earned in 2020 would be considered nontaxable if your household income is less than $150,000.

IRS Statement on American Rescue Plan

Once the IRS issues some guidance, TurboTax will be able to update their software accordingly.

How will the 3rd stimulus affect me

Re: Unemployment tax

inc3000 — Sun, 14 Mar 2021 23:17:54 GMT

The bill has been enacted into law as of now. I tried filing my taxes but turbotax hasn't updated this yet....

Re: Unemployment tax

Techsourcer — Mon, 15 Mar 2021 02:20:12 GMT

So here's a catch 22. I've not filed 2020 taxes yet. Waiting for Turbo Tax's updated info to account for the $10,200 reduction in tax liability related to unemployment. With that reduction and adjusted taxes, I'll be eligible for the $1400 stimulus check- which are being processed now. If I do not file my 2020 taxes, I will not be eligible for the check due to my income in 2019, changing siginificantly post layoff. Any suggestions? Is it better to file now and then amend?

Re: Unemployment tax

JohnW152 — Mon, 15 Mar 2021 14:04:24 GMT

The IRS hasn't provided guidance yet on how this will be addressed, but once it does, TurboTax will be updated to reflect the new laws.

You can sign up for updates at How do I claim the new unemployment benefits in TurboTax?.

Re: Unemployment tax

jnt603 — Thu, 08 Jul 2021 08:16:30 GMT

I filed my taxes before the new law took effect. however after waiting for the IRS to amend my taxes, the IRS did not amend my taxes. What should I do?

Re: Unemployment tax

Critter-3 — Thu, 08 Jul 2021 11:42:46 GMT

Hang tight ... if you only got the original refund then you must wait for them to recalculate the return for the unemployment exclusion and send the additional refund if you are eligible for it ... nothing you can do but wait for the IRS to get to your return in the pile of millions of returns they have to get to.