Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Apr 6, 2021 10:45:28 AM

Massachusett Unemployment Compensation Deduction.

Why doesn't Turbo Tax take a $10,200 deduction for Unemployment Compensation on a Massachusetts State tax return for a couple (family size 2) with an AGI of $21,695? Shouldn't there be a deduction on Mass Schedule Y, Line 9 for $10,200?

 

0 10 1238
1 Best answer
Expert Alumni
Apr 6, 2021 8:14:57 PM

Yes, there should be a deduction. The TurboTax program has not been updated yet to reflect the deduction for unemployment income yet, as the legislation was just passed recently.

 

If you file your tax return before the adjustment is installed, the state will adjust your return to reflect the change, but it would be best to wait until TurboTax has been updated to make sure you return is processed properly.

 

 

10 Replies
Expert Alumni
Apr 6, 2021 8:14:57 PM

Yes, there should be a deduction. The TurboTax program has not been updated yet to reflect the deduction for unemployment income yet, as the legislation was just passed recently.

 

If you file your tax return before the adjustment is installed, the state will adjust your return to reflect the change, but it would be best to wait until TurboTax has been updated to make sure you return is processed properly.

 

 

New Member
Apr 8, 2021 5:45:47 AM

I had same issue, when Turbotax  will have this update ? any timetable ?

Returning Member
Apr 8, 2021 6:17:40 AM

Massachusetts had an update today, I was so excited, but... it didnt fix the PPP issue nor the unemployment issue. Very frustrating. 

Expert Alumni
Apr 8, 2021 4:35:17 PM

The state has said they hope to have their forms finished in another week. Once done, TurboTax will incorporate quickly.

 

According to @dave_the_rave  in another thread. 

New Member
Apr 12, 2021 1:16:04 PM

You know it should be updated.  WHEN will it be updated?

Employee Tax Expert
Apr 12, 2021 1:23:46 PM

We do not have a date.   TurboTax calculations have not been updated for Massachusetts. If you haven’t filed your return, you can either:

  • Wait for TurboTax to be updated along with your state, or
  • File your return now and potentially amend later if they do not follow the federal guidelines.   @brenruth

Level 1
Apr 14, 2021 9:43:06 AM

Hello, do you know WHEN Turbotax will have this updated on the Home and Business version?  Thank you!

Expert Alumni
Apr 15, 2021 7:16:57 AM

Please continue to check the link below for the most up to date information for unemployment income and whether your state is ready to file.  It's important to receive the details from each state and their approval of the necessary changes to complete the return.

New Member
Apr 17, 2021 12:18:52 PM

It doesn't look like it has been updated. My return is looking at gross income instead of AGI to calculate eligibility for unemployment waiver

New Member
Apr 18, 2021 6:06:40 AM

There was an update for Massachusetts this morning, but it did not do anything for the 10,200 unemployment deduction. When will Turbo Tax be making this update? It is already April 18th