IRS Posted Process for 2020 Unemployment Compensation Exclusion

[RRBOE]

The IRS has posted a process for reporting unemployment income to exclude from taxable income. Their process calls for reporting amount on line 1 on from 1099-G to be entered on line 7. Further, the IRS instructions call for the following: "On the dotted line next to Schedule 1, line 8, enter “UCE” and show the amount of unemployment compensation exclusion in parentheses on the dotted line. "

The only way to make this text entry is with a manual override, then TurboTax flags this as an error, so I won't be able to submit electronically.

Will TurboTax update their software to allow for this IRS required text entry on Schedule 1, line 8?

[SweetieJean]

TT must first program and test any official procedure (as well as any for those who have already filed), and then gets its programming approved by the IRS. So stay tuned.  Overrides can void the TT accuracy guaranty, and preclude efiling.

[RRBOE]

I cancelled the override and put the IRS directed comment on a Blank Form. That should work, it's the official "hack" the IRS published. The whole thing is a big mess congress created.  The IRS notice is here: https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[Anonymous]

How do you create the new form in Turbotax?  Won't allow.

[AnnetteB6]

TurboTax is waiting on further guidance from the IRS as things are being updated to handle this recent change. 

Take a look at the following TurboTax article for more details and use the link in the article to register your email to be notified when everything is ready to go:

How do I claim the new unemployment benefits in TurboTax?

@Anonymous

[Anonymous]

Any idea on how long this will take?  We are fast approaching the deadline.

[SweetieJean]

The IRS must approve TT's programming before TT can release it.  

[RRBOE]

Search for the form name "Blank Form".