State of Maryland just passed a new relief act 2021which repeals all state and local income taxes on unemployment benefits. Does Turbotax has implemented it?

[SteamTrain]

NOW...it Sounds like they are going to use your 2019 MD tax filings first... for these:

Listen to all of this first:

https://www.youtube.com/watch?v=_LFG1G6K7co&feature=youtu.be

_____________________
Then go here...but may have to revisit in another week...might be too soon:

https://interactive.marylandtaxes.gov/Relief

[Bill O]

Your response reflects only one portion of the Act.

Members should refer to the following article to appreciate the full breadth of the ACT:

https://www.baltimoresun.com/politics/bs-pr-relief-act-20210215-a46rtazojnhhhbmz3j2f6qr644-story.htm...

[SteamTrain]

@Bill O 

True...the unemployment part will only be settled by tax form changes...MD says to not expect those changes to occur before March...but they don't say WHEN in March. Even if early March,  I suspect late March at the earliest for the tax software.

___________________________

"Please note that tax forms related to the RELIEF Act signed into law on February 15, 2021, will not be ready until March. "

https://www.marylandtaxes.gov/RELIEFAct/index.php

[Slee5876]

But what about percentage change on eitc from 28% To 45% rate

[LenaH]

Once the forms are revised by the State of Maryland, TurboTax will update the Maryland state return to reflect all changes under the RELIEF Act. 

Per the State of Maryland, filers claiming the federal EITC may also be eligible for a refund of a percentage of this amount through their Maryland tax return. The RELIEF Act increases this percentage from 28% for tax year 2019 to 45% for tax years 2020 through 2022, resulting in an increased refund amount for some taxpayers. Additionally, for tax years 2020 through 2022, taxpayers without qualifying children will be allowed to use the full amount of their federal EITC as a refundable credit against Maryland income tax, up to a maximum of $530.

These changes do not require any action on behalf of taxpayers or preparers and will incorporated into the revised forms and instructions pursuant to passage of the Act. Individuals who qualify for the enhanced state REIC but who have already filed need not take any action. The Comptroller will make any adjustment necessary based on the law change and will adjust the amount of the credit, including sending an additional refund if applicable.

For more information, please see the Maryland RELIEF Act Tax Alert. 

@Slee5876

[Mike3206]

So if I already did my return and owe money do I need to do an amended return for the unemployment tax relief once they update forms? Because I will probably get a refund in that case. I haven’t paid it yet as I was waiting to to amended return when forms are updated.

[gloriah5200]

Yes, if MD changed their tax code and that would generate a refund for you by filing an amended return once they have all the forms and changes approved and put in place, then that is what you need to do.

However, if you do not pay your balance due by the due date of the return, then they may charge you  penalties and interest on the unpaid late payment.

Generally, if you file a return and you have a balance due, the taxing authorities want you to pay the balance due from the original return before you file the amended return.

You could watch your time and see how close you get to the filing deadline and balance due payment date to see if they have things in place to file the amended before the due date of the payment.  If the due date gets too close, you may have to pay the balance due and request a refund with the amended return.

[8834]

When can i amend my return for the state taxes? 2020

[PattiF]

The forms must first be revised by the State of Maryland. Once that is done, TurboTax will then update the Maryland state return in the program. Since the forms have not been released from the State of Maryland, the instructions to complete this in TurboTax are not known at the time.

Also, please keep in mind that the tax free unemployment waiver only appears to apply to single filers who reported under $75,000 or joint filers who reported under $150,000. 

For more information, please see the link.  The state website states that the forms will not be ready until sometime in March.

{Edited 01:22 PM PST}

[ANG88]

@PattiF 
Would like to correct some info for those who may see your reply:

The tax free unemployment waiver is for those who have a "filing status of single, married filing separate, or dependent with agi of less than $75,000, and filers with married filing joint, head of household, or surviving spouse status with a agi of less than $100,000."

Source:The actual Tax Document 

[Scorp2017]

This is great news on this thread for all Marylanders. This gives all parties involved the time needed.

https://wtop.com/maryland/2021/03/md-comptroller-extends-deadline-for-state-tax-filing/amp/

[LenaH]

Yes, that is correct. The tax free unemployment waiver only appears to apply to single filers who reported under $75,000 or joint filers who reported under $100,000. 

For more information, please see RELIEF ACT FAQ's.

Furthermore, the State of Maryland released a Tax Alert on 3/11/21, which states that all individual, corporate, pass-through entity, and fiduciary income tax returns that otherwise would have been due on varying dates between January 1, 2021 and July 15, 2021, inclusive, are now due on or before July 15, 2021. 

Maryland Tax Alert 3/11/21

@ANG88

@Scorp2017

[Buckthorn427]

That is not correct.  It's under $75,000 for single filers and $100,000 for married filers.  Makes no sense at all but that's politics for you. 

[liltwinks01]

Referring to the part about state and local unemployment taxes being forgiven

[AmyC]

@liltwinks01 this is  a very long thread with a lot of great links. Can you clarify your question in order for us to correctly respond?