I have the latest turbo tax. I entered our unemployment value in the program. Then the federal taxes jumps up in the amount owed. So to me, its not updated to reflect the tax break on the 10,200.
Am i missing something?
I've already filed back in feb, unsure if I should amend or how to, given that the program doesnt seem to recognize the tax break?
There are two things you might be missing.
1. If you received more than $10,200 of unemployment benefits, your tax will increase when you enter your unemployment because only the first $10,200 is not taxed. You have to pay tax on any unemployment benefits over $10,200.
2. If your Adjusted Gross Income (AGI), not including unemployment, is $150,000 or more, you are not eligible for the exclusion. In that case, all of your unemployment is taxable.
In any case, do not file an amended return. If you are eligible for the exclusion, the IRS will recalculate your tax return and send you an additional refund. It might be a couple of months before you get it. It doesn't matter what TurboTax does or does not do. The IRS will do the recalculation, not TurboTax.
In our case our agi is under the limit, i think 15k was the original amount so i think the full amount is covered?
However.. i just realized we had paid taxes owed of around 2200, now when i open the same file from turbo it does say in fact owed 1000 or so, so i think its got the offset correct. I guess its just a matter of waiting then.