topic Per the changes in the 3rd stimulus package, the first $10,200 of the unemployment benefits will now be treated as non-taxable income. Has TurboTax made this change? in Retirement tax questions

Per the changes in the 3rd stimulus package, the first $10,200 of the unemployment benefits will now be treated as non-taxable income. Has TurboTax made this change?

jagnum82 — Mon, 15 Mar 2021 01:57:32 GMT

I am wondering if this change will be made once the IRS has integrated this change on their end as well?

Re: Per the changes in the 3rd stimulus package, the first $10,200 of the unemployment benefits w...

JoannaB2 — Mon, 15 Mar 2021 02:09:29 GMT

No, Turbo Tax hasn't been updated yet. The American Rescue Plan enacted on March 11, 2021 excludes from income up to $10,200 of unemployment compensation paid to you in 2020 if your household AGI is $150,000 or less. Click here, to get the latest information

Re: Per the changes in the 3rd stimulus package, the first $10,200 of the unemployment benefits w...

jagnum82 — Wed, 17 Mar 2021 16:12:17 GMT

Sounds like the changes won’t be incorporated by April 15th?

Re: Per the changes in the 3rd stimulus package, the first $10,200 of the unemployment benefits w...

KathrynG3 — Wed, 17 Mar 2021 16:24:22 GMT

The update should occur in time to file.

The IRS is working closely with the IRS and will be releasing the update as soon as possible. Log out and close the window each day so that your program has the updates when you open it again. Be sure to use a Chrome window to open your program.

Meanwhile, get all your details ready so that when it is updated, you will be able to file.

The IRS has not fully updated their site and is asking people to check back for updates. See: What if I receive unemployment compensation?

@jagnum82

Re: Per the changes in the 3rd stimulus package, the first $10,200 of the unemployment benefits w...

cutout — Fri, 19 Mar 2021 19:12:53 GMT

I've already filed my taxes. How will that be handled?

Re: Per the changes in the 3rd stimulus package, the first $10,200 of the unemployment benefits w...

ReneeM7122 — Fri, 19 Mar 2021 20:00:11 GMT

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.

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.

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

How do I get the new unemployment benefits if I’ve already filed my taxes?

Here is a TurboTax article about the American Rescue Plan.

@cutout