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?

[Kennybol13]

So has turbo tax updated to include the maryland relief unemployment yet? 

[SForrestLO]

@Kennybol13

You can follow this process to check for updates.

Manually Update TurboTax for Windows Software (Basic, Deluxe, Premier, Home & Business) Manual Update

[abowlding2]

I have started preparing my taxes and gone through the payment process.  I would like to submit my Federal tax return but not the state due to pending changes.  Can I still file Federal without filing State?  I currently owe which will hopefully change.   It is asking for payment method to move forward with filing process.

[Mike3206]

You can but keep in mind if you collected unemployment that the Federal is also not making you pay taxes on it up to $10,200. They extended Federal returns till mid May to update forms.

[abowlding2]

Ok, it appears as if I got credit on the Federal taxes for unemployment but not State.  I was given the option to submit my Fed tax return and wait on State.  The problem with me doing that. is I have already paid for preparation of taxes and not sure if I try to submit just for Federal it will allow me to wait on filing State.  From previous posts and research doesn't look like I can file one without the other if I have already paid. 

[Mike3206]

You will have to do an addendum to the State taxes once forms are created. So has the Federal already updated the forms for waiving unemployment tax?

[abowlding2]

Yes, it appears that the Federal has already updated their form but the State has not. I prefer not to do an addendum, so if I have to wait a little longer than I will.

[Mike3206]

Yes I filed Federal before the bill was passed but it says to wait as the IRS may automatically issue refunds back rather than do addendum. Now State I filed and owe but haven’t paid since MD passed a bill to waive state tax on unemployment so I probably will now get a refund. I’m just waiting on MD to give further guidance or update their forms so I can do an addendum on my state return. Hopefully it’s soon.

[PattiF]

The Maryland state site says that the forms will be ready on March 25, 2021. TurboTax will have them available soon after that date.

[abowlding2]

Thanks! I will just wait until next week to see if the MD state form was updated before filing.

[Mike3206]

Great news!

[abowlding2]

It appears as if TurboTax updated the MD unemployment credit but it doesn't appear on the tax form.  As a result of my State return being rejected. :(

[Mike3206]

So how did you know they updated the form? If it’s not showing then they couldn’t have updated it yet.

[abowlding2]

Note I had not filed yet.  When I open my TurboTax account, a screen noting the state credit for unemployment and the amount owed was reduced but somehow the credit/deduction is not showing on tax form.

[Mike3206]

Oh ok. Maybe Turbo Tax is still working on updating form.