Unemployment and what to claim

[Andeecat]

So I read on the Turbo Tax website that the first 10200.00 of Unemployment does not have to be claimed on your tax retro to 2020 due to COVID. I have not filed yet and I am wondering if I need to claim it. I made 9823.00 in Unemployment last year due to closure of the business I am employed and I paid 979.00 in Fed tax already. I make less than the 150K that is stated. Do I need to claim the Unemployment I made in 2020 on this years taxes?

[xmasbaby0]

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

You are among millions who have now been affected by a mid-tax season change in the tax law.  Patience will be necessary.

TurboTax will update the software for the unemployment but there is no timeline yet.

  If you have not e-filed yet—-wait.   And if you already e-filed and want to amend for this—WAIT.

Please read this very recent news from the IRS:

https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[Andeecat]

Thanks for the info. I will hold off on filing and maybe file an extension if the updates are not available.

[Andeecat]

As it seems that a new form is coming out before too long (we hope) to deduct the Unemployment we made for 2020 due to COVID would it be better for me to file an extension for filing my taxes? I only owe right now about $150 and that is only because of the Unemployment I was paid. 

[JohnB5677]

If you've filed your return, do not do anything yet.  If you haven't filed you should file as usual, and include the full amount of the 1099-g..

The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of economic impact payments, including the unemployment benefit will be forthcoming.

The IRS strongly urges taxpayers not to file amended returns related to the new legislative provisions or take other unnecessary steps at this time. The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable.

For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return.

TurboTax is developing the software required to process all of the new conditions.

[Andeecat]

Thanks. I also see that the IRS is extending the filing date to mid May so I should have time to get the form.

[ReneeM7122]

Yes, you are correct.  Here is a link to the IRS website with information about the extended filing deadline.  

The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of economic impact payments, including the unemployment benefit will be forthcoming.

@Andeecat