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?

[Mike3206]

I think if you do amended return you have to mail it.

[Eagles1991]

So federal and state accepted my e file.So I'm guessing everything is efile for the 502 lu because both of my returns were accepted for state maryland and federal.

[tonywl73]

now i am getting this message so guess im waiting a little longer

Description of error:

When amount for unemployment is greater than 0, Unemployment Form(s) should be present and **bleep**I cannot exceed $100,000 for taxpayers with Married Filing Jointly, Head of Household, or Qualifying Widow filing statuses and **bleep**I cannot exceed $75,000 for taxpayers with Single, Married Filing Separately, or Dependent filing statuses.

What needs to be done:

This issue will be resolved in an upcoming product release scheduled for April 29, 2021. Update your software on or after 04/29/2021 (for web products this will happen automatically), run a final review of your state return, make the appropriate change and re-submit this return electronically.

[ANG88]

Turbo Tax has been a headache through this entire process. I’m waiting to amend my state taxes for this very reason. I originally only wanted to file my federal and the website assured me during the online process it would hold off on my state only for it to file both my federal and state at the same time. Like I said, headache. 

[jennifersabell]

Question:  I live in Maryland but worked in VIrginia and therefrore received Virginia Unemployment, but had to claim on Maryland form.  The 502LU is not showing up on mine.  Do i still get it or not?  I don't know if its TurboTax glitch or I really dont get it.  Thank you.

[DaveF1006]

If your unemployment benefits were less than $10,200, the 502LU would not be included because all of the unemployment benefits have been excluded from your adjusted gross income both federally and the state of Maryland. A 502LU would have been included if the unemployment benefits exceeded $10,200. For an example, if your unemployment benefits was $11,400, then a 502LU would have been generated to exclude $1200 ($11,400-$10,200).

[tonywl73]

same boat as you and so confused myself. I worked in de, lived in maryland. My unemployment was 20k and now im not sure if i really owe the 686 in md state taxes its telling me or not. I dont see anything about a 502LU on mine either

[jennifersabell]

As it turns out, I'm $10,848 in unemployment.  Shouldn't i have the 502LU pop up for MD return?

[AmyC]

@tonywl73  @jennifersabell

You should both have 502LU. It is part of the program. You can verify the reduced income before paying (How do I preview my TurboTax Online return before filing?). Once you pay for your return, you will want to go through your forms, as always, double checking your information was inputted correctly and carrying as it should with the right forms.

Sometimes data gets stuck and you may need to jump through those hoops. You may have to delete the unemployment and go through the steps below.

For stuck information follow these steps:

1. Delete the form, see How to Delete 
2. Log out of your return
   1. Try one or more of the following:
      • Don't use Internet Explorer.
      • Clear cache and cookies,
      • Sign in using a different browser.
      • Sign in using a different device.
3. Log back into your return.
   • Enter the form again.

[tonywl73]

Thanks for responding...

However ive already filed....couple weeks ago it looked like everything was fixed so I filed. Fed and Delaware were accepted but Maryland rejected. So i only get the option to fix my claim/revisit it....should i still do what you suggested?

[tonywl73]

and what part am i deleting again? what can i do about deleting unemployment if my federal has already been filed and accepted?

[tonywl73]

im still getting

Let's take a look at your return

Description of error:

When amount for unemployment is greater than 0, Unemployment Form(s) should be present and **bleep**I cannot exceed $100,000 for taxpayers with Married Filing Jointly, Head of Household, or Qualifying Widow filing statuses and **bleep**I cannot exceed $75,000 for taxpayers with Single, Married Filing Separately, or Dependent filing statuses.

What needs to be done:

This issue will be resolved in an upcoming product release scheduled for April 29, 2021. Update your software on or after 04/29/2021 (for web products this will happen automatically), run a final review of your state return, make the appropriate change and re-submit this return electronically.

[tonywl73]

Jennifer,

I am in the same boat and so confused....I made over 20k in unemployment from delaware...state i worked while living in maryland. Well both states passed their legislation saying unemployment wasnt taxed. Well de was fixed right away in turbo and maryland was showing i was getting a small refund 236ish, so filed, then maryland rejected giving me the message about needing a software update which i am still getting. Maryland went from refund of 236 to owing 686 when turbotax fixes it while still giving me the message to wait. I called tonight and an customer service rep was confused as I am, and she thinks i owe the 686 which really confuses me because both de and md arent collecting taxes on unemployemt and i only work three months before unemployment and theres no way i owe md that much from three months of working....I am just so confused I dont know what to do...

[rchadd]

It is May 3rd and Turbo tax still has not updated their software and I am stating to believe they never will.  There are only three that need to be fixed, MD, WV and DC.  MD updated their forms on April 15th.  Turbo Tax has really gone down.  

[tonywl73]

yeah im getting worried as well....i called friday and the agent couldnt tell me when or how it was going to be fixed, she even said it could be friday night. Then she said something about maybe maryland will extend their deadline. With all the covid stuff and unemployment, I paid turbotax this year because i wanted to make sure things were done right, but im really discouraged and the lack of updates is even worse