2020 Arkansas Unemployment will not be taxed--When will TurboTax update their software so I can e-file my fed/state returns

[OkieinArkie101]

On 3/4/2021 The Arkansas governor signed into law HB1049.  This new law will not tax unemployment income for 2020 or 2021.

When can we expect TurboTax to update their software so that we can accurately complete our 2020 Arkansas tax return?

I plan to wait until the TurboTax update is completed prior to e-filing my state of Arkansas tax return to avoid any redo at the state tax office.

I look forward to the response.

Thank you

[OkieinArkie101]

FYI:  I just contacted TurboTax customer service over the telephone (they answered in 15 minutes) on my question.

The nice young lady informed me that their team was working the Arkansas update and within the next 24-48 hours it should be completed so we can accurately file our taxes in this state.

Great news.  Let see if is completed with 24-48 or longer hours.  

[OkieinArkie101]

It has been over 48 hours since I posted the response from the TurboTax support team and the changes in the Arkansas state income tax have not been updated.

I will continue to monitor but it is not easy to identify the correct TurboTax team members to make the changes.

[BillM223]

To update tax software means that TurboTax must:

1. Get the final approval of the law (in this case, Act 154 was signed into law just last week).

2. Update any Arkansas forms that have changed

3. Get the changed forms approved if necessary by the state

Note: there are two versions of the form: the PDF version that you see and the XML version which is e-filed.

4. The change must be designed, screens updated and code written

5. The code must be tested, not only on the state level but also regression testing to make sure it does not break anything else.

6. Internal documentation, if needed, is created.

7. The online code AND the CD/download code has to be made available. This tends to happen once a week (but there are exceptions).

Now, the software teams have to do this in this middle of dozens or hundreds of last minute changes in the states and on the federal return. Skipping these steps or trying to cut corners to save time is a great way to break everything which would be worse than taking a while to do it right.

As you know, normally, tax law changes are completed prior to the end of the previous year. Last second law changes cannot be made immediately, and the dozens or hundreds of changes being created by last minute law changes across the states and the federal government just multiplies the effort needed exponentially.

And, as you know, the changes are still being made by the states and the IRS. I urge you to have patience as I am sure you would rather have the software be right than ready now, just days after the governor signed the bill.

[OkieinArkie101]

Your advice if thoughtful and prudent.

However, if TurboTax concurs with your guidance they should inform users on their software updates that this is their process for your state or the federal government and be patient (which is a specific amount of time).

To minimize errors on your tax return and maximize your tax benefit they should suggest completing your tax return using TurboTax after a specific date.

What are your thoughts on this recommendation?s

[BillM223]

"and be patient (which is a specific amount of time)"

Unfortunately - and I say this as someone who did tax software programming for 5 years for another company and not as a spokesman for TurboTax - right now, as the IRS and states are daily creating changes in the tax code and their rules and procedures, it is practically impossible to give a set date, because you do not - and cannot - know what change is going to come up tomorrow that affects more customers than the change you are working on now does.

You have heard the phrase "moving the goalposts"? That's what the various governments are doing right now. It's very difficult to do planning when the goalposts are being moved everyday.

I appreciate your understanding and patience.

[OkieinArkie101]

Thank you for the response.  Understand the moving goal posts.

I personally think TurboTax does a great job of keeping the software up to date.

With the amount of change taking place it would be helpful if some tax filing guidance could be shared with users based on their state.  Delaying my filing for a few weeks based on guidance seems prudent.  I would just require some alert guidance.

Enjoy the day.  Thank you.

[sssnake]

I'm in Arkansas too. I had filed returns back on Feb12 and paid my taxes electronically in March. Then all this changed. I know I am too wait for the IRS to address the Fed issue and to NOT file an amended return because they were trying to come up with a way to just issue refunds instead of doing an amended return. So that's fine. 

But as to Arkansas will I need to file an amended return with them or are they working on something similar to the Feds? I noticed when I signed in to Turbo tax last week an Arkansas update installed.  Ordinarily when I would open up my Turbo tax it would show the amount I paid Arkansas. In this case, after the update, it showed that I was now getting a refund. But of course that's not the return that was filed. I have never filed an amended return in my life so this may be obvious to some but I am not sure how to proceed here. 

So would you know if I will need to do an amended return

Thanks for your help

[OkieinArkie101]

You might consider calling the Arkansas Income Tax number directly, explain the situation, and ask them if you should  file an amended return.   When I called them to ask for guidance they informed me that they would make the filing changes for my return based on the tax law change.  That way I would not have to file an amended return.

Fortunately, I delayed my Arkansas filing until last week after the TurboTax update and saw the benefit of the tax law change.   It was a significant surprise to me.  I received a return as you mentioned versus having to mail the state a check.   

Good luck.  Maybe someone smarter than me has some better advice.  

[sssnake]

Thanks for the info. I don't watch any news on tv but I did an internet search and if the stories i read are accurate, and that's a big if, then the state of Arkansas is doing something similar to the Feds. They said they are currently pulling all of the early filers' returns like mine and mailing them letters and refund checks. The DFA website in Arkansas has very little on it right now addressing this. But I'm a patient guy. So I will just stand by and wait and see what happens. I'm definitely NOT filing any amended returns, state or federal, at this point. Thanks again for you response. It was helpful. 

[JotikaT2]

The updates have been made for the federal returns using the online program.  The updates are being implemented for the desktop software. Both online and desktop programs are currently being updated for the state changes as well.

I recommend signing up for updates using the link below to be notified.

Unemployment update for desktop

Please see the following link as well for updated information as it is released.

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