If American Rescue Plan makes $10,200 of UEC in 2020 tax free, and I get a new 1099-G, how do I amend return in TurboTax?

[Mullindw]

Thanks Dave but why would Turbo Tax still allow folks to file inaccurate tax returns?  If they have unemployment $, they should not be allowed to file and why is there not something they can communicate on the Web site in big bold letters to alert folks to the change and when the change occurs.  They have a statement in the Review section.  Very discouraging.

[vfurigay]

Dear Sir/Madam

How come my turbo tax software is not updated with the new bill. I have not filed yet but there was no form for reducing the Unemployment for 10200.00

Please advise on how to proceed.

thank you

[vfurigay]

Please advise on how to proceed as my software is still not up to date.

thank  you

[Mullindw]

Nothing that you can do until TT updates their software and do not file since it technically is inaccurate since it does not have the unemployment tax change.  If you had no unemployment then you are not effected.  It is very frustrating that their is no communication from TT on this and I am sure some folks are filing and will be upset later.  

[MaryM428]

The Online TurboTax has been updated to reflect the federal tax forgiveness for the first $10,200 of unemployment.  The desktop software update is in progress and will be ready soon. 

We have still not learned how the IRS will be handling the situation where a person filed their taxes and paid federal tax on their first $10,200 in unemployment, but now do not owe that amount.  They have advised not to amend. 

Here is information about the tax changes with a link to be notified when the information is available.

[holl22]

any idea when the states will be updated to reflect any tax forgiveness on the unemployment? NY and NJ specifically? 

[NewYorkTaxpayer]

This was a federal change -- New York has not yet made the same income exception to unemployment benefits..  Because of changes NY made last April, it would require a legislative action to carry over the federal exemption to NY income taxes.

[rjs]

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@holl22 wrote:

any idea when the states will be updated to reflect any tax forgiveness on the unemployment? NY and NJ specifically? 

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@holl22  No update is needed for New Jersey. New Jersey does not tax unemployment at all. Unemployment doesn't even appear on the New Jersey tax return.

[holl22]

Thanks. I did read that NY will update by 4/1 if they will follow federal or not. 

[RGQ2021]

I am in a similar situation.  I got a corrected 1099-B from Robinhood.  I don't see a way to amend the new corrected 1099-B.  Turbotax support was not help.  Should I also continue to hold on filing until turbotax update their software for the additional tax relief American Rescue Plan tax breaks?

Thank you for your advice.

[julielastinger]

At least we have more time until the tax deadline. Since it was extended to May 17, we can wait longer for the IRS to get it's act together and get the update to Turbotax to update the program. I"m waiting to file my return as long as I can so I don't have to deal with an amended return.

[julielastinger]

My downloaded Windows Deluxe program has NOT been updated either. I still get the message about being eligible for the UEC change, and to wait to file until the software is updated. I checked line 8 of 1040, and it carries from the Schedule 1 worksheet. That shows me only the loss from my Sched C  business plus the amount of UEC income received. The negative amount on line 8 of 1040 is just the net result of those 2 figures. The amount of UEC is still shown as the full amount being taxed. NOT updated in the downloaded Windows version of the program. I'm waiting.

[DawnC]

It is not updated in the desktop software yet.   The IRS made another change to UE income on Monday - it is now not counted as a part of AGI (adjusted gross income) when determining if you qualify for the exclusion.   The AGI limit is $150K and unemployment received was counted as part of the $150K limit last week.   This week, they have reversed that, so more changes need to be made.   If you have not filed yet, use the link found here to sign up to receive an email notification when TurboTax is ready to properly exclude the income.    @julielastinger

[garpgump]

Okay, so it's Wednesday night, 3/24/21, and still no update to TT Windows version.  I guess I'm in a holding pattern along with everyone else.  I clicked "I'll wait to file" and just SAVED under the File menu before exiting.

I hope this gets resolved soon.

[DawnC]

TurboTax is not yet fully updated to reflect the most recent legislative changes to unemployment.  Here are the 2 most recent updates for unemployment - one for those who have already filed and one for those that have not filed yet.  They both pretty much say to wait and to sign up to be notified by email when things have been finalized.

For those that have filed, we are waiting on the IRS to confirm whether or not they will adjust those returns as opposed to having taxpayers amend their returns - they have waffled on this claim, but currently, the guidance is to wait for further instruction.   IRS link is below; see underneath the bullet points; it states taxpayers should NOT amend at this time.  

For those that have NOT filed, some parts of TurboTax are updated, some are not.  Plus, the IRS just made another change (regarding the AGI calculation to determine eligibility for the exclusion), so the program will update again for that.  So, if you have not filed, the guidance from TurboTax is to wait while we get things finalized - which can't happen until they finalize the legislation.  But you can still sign up to get the email when we are confident that TurboTax is ready to handle the exclusion as the IRS has prescribed it to be handled.    The tax filing deadline has been extended to 05/17.  

IRS News Release - New Exclusion of up to $10,200 of Unemployment Compensation  This version was released today 03/24 and clarifies the changes in the MAGI calculation and NOT to amend.  All 3 of the links included here will update with any future changes as well.  @garpgump