1099-G Unemployment Update for Turbo Tax users as of 3/20/2021

[msgmills62]

I believe as of this date the Federal Government has now officially waived up to $10,200 of Unemployment income you can deduct off of your Federal and State Income taxes for the year. Has this new update been implemented into the Turbo Tax Program yet, if not, when do you expect the update to be done so people who have not completed their 2020 Tax Returns. So that they will be able to use the new Tax Update when filing their taxes. Because as it stands right now, I will owe the State $$$ this year if I have to claim my wife's unemployment income and not having to claim the Unemployment income at all on out Federal Income Tax Return will get us an even bigger Tax refund this year. So I'm going to hold off on filing my Tax Return this year until the update is entered into the Turbo Tax Program. I don't want to have to File an Amendment on both my Federal and State Tax Returns if I go ahead and file now.

[MinhT1]

TurboTax is still waiting for IRS guidance before updating their program.

Please read this TurboTax Help topic for more information.

[Jkashmer004]

It has been weeks. Any idea how much longer? I already paid my bill and would like to file

[NCperson]

@Jkashmer004 - it's updated - look at your tax return and you should see the reduction if you are eligible. 

Look on Schedule 1, lines 7 and 8. 

generally speaking, your income prior to the unemployment income must be less than $150,000 to be eligible.

[DoninGA]

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@Jkashmer004 wrote:

It has been weeks. Any idea how much longer? I already paid my bill and would like to file

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The update for the unemployment compensation exclusion was released to all the TurboTax platforms, online and desktop, on 03/26/2021.

[Jkashmer004]

It hasn't been updated on mine still. I live in NY. Its miscalculating the numbers.

[NCperson]

@Jkashmer004 - what is the miscalculation? can you please be more specific? 

if NY begins with your AGI, that AGI should match what is on Line 11 of your Federal Tax return. 

Line 11 should already be reduced by up to $10,200 for unemployment.

[Jkashmer004]

Its saying 25k - 8k = 27k please refer to the image i posted

[Jkashmer004]

I paid taxes on my unemployment as I was getting it, so I should be getting back the taxes on that, and yet I owe around 700 dollars. So something isn't right

[NCperson]

@Jkashmer004 - without more detail, it's hard to determine.....did you have other income where not enough was withheld? did you sell stocks at a profit and now have to pay the taxes on the gain? there are simply a lot of variables and without looking at the tax return itself, is hard to determine. 

did you check that all your documents were entered correctly, especially the forms that have federal tax withholdings? 

[Jkashmer004]

Everything has been entered correctly on my forms, I did sell stocks at a profit and I expect have to pay tax on it. I talked to a specialist on the phone and she said it may take another 2 weeks for the error to be fixed. She said turbo tax is waiting on guidance from the irs to update new york. She also mentioned that because of the new bill passed that turbo tax isn't calculating my taxes correctly for state

[JohnB5677]

It's already taken care of.

It is first recorded on Schedule 1 as Unemployment Compensation on line 7.  Then on line 8 there is a UCE (Unemployment Compensation Exclusion) of -$10,200.

This is then carried over and posted to your tax return (1040) on line 8.

So, it’s already included. 

 Unemployment Stimulus: Am I Eligible for the New Unemployment Income Relief?

The IRS announced that people who are eligible for the unemployment tax deduction and have already filed their 2020 taxes do not need to file an amended return.

If you owe under $1,000 the unemployment adjustment should cover that expense.  However, if you owe more than that I suggest you do make a payment.

If you've already filed your return, the IRS will recalculate your taxes, adjust your account accordingly, and send any refund amount directly to you.  States are following a similar process.

The IRS strongly urges taxpayers not to file amended returns related to the new legislative provisions or take other unnecessary steps at this time.