Unemployment Insurance income from 2020

[dbadkn12]

Under the RESCUE plan, unemployment benefits for single with  income below 75,000 are tax free upto $10,200.

I am using Turbotax premier to prepare my taxes. This software does not have updates to exclude UI income of $10200.

Does anyone know when Turbotax will have the updates ready to exclude UI income of $10200 for single filers.?

[HelenC12]

At this time, we don't have any information on how the IRS is going to handle the $10,200 unemployment. Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment. 

• If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here. 

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.  

[dbadkn12]

I have signed up to receive the updates.

Thanks

[dbadkn12]

I live in a Maryland state. Maryland state had passed the legislation to waive the state tax on all Unemployment Benefits for 2020.

Do you know if it is correct.?  When will Turbo tax software will have the updates ready?

[msgmills62]

How do you sign up to receive the updates for your Turbo Tax Program you purchased. I'm waiting on the update before I file my Tax Return so I don't have to File an Amendment on both Federal and State Tax Returns.

[dbadkn12]

I do not remember where I signed up to receive the updates. Here is what you can do.

1) Launch Turbo Tax

2) Click on "Online"  between File and Help  ( on the top bar ).  From the drop down menu, Choose "Check For Updates"  It will  tell you if the software installed needs updates.

[DianeW777]

You can use the links below to be notified when this is available and updates will load automatically upon launching TurboTax CD/Download or signing into TurboTax online.

The update for TurboTax Online is live, the update for TurboTax CD/Download is coming soon, continue to check for product updates throughout the week.

To be included in an email update click the link below and add your email to the list.

• How do I claim the new unemployment benefits in TurboTax?

With this new law, if your household income is less than $150,000, the first $10,200 of unemployment will be tax-free, but any amount you receive above that will be taxed.

[dbadkn12]

Thanks

How about Maryland State Tax. Is Maryland state tax id waived for ALL the unemployment income earned in 2020

[dbadkn12]

To be included in an email update click the link below and add your email to the list.

• How do I claim the new unemployment benefits in TurboTax?

[PattiF]

The Maryland website states that there will be a new form to be released on March 25. TurboTax will work quickly to have this in their system.

[Tanya14]

I am also waiting for the TurboTax Deluxe desktop version to be updated. Does anyone know if TurboTax will work with the IRS to ensure everyone who is eligible on their 2020 taxes get their American Rescue Plan stimulus?

Originally, I was not eligible to receive the stimulus payments because of my 2019 income. But, I lost my job and became eligible for all stimulus payments because of my lower 2020 income. I understand that I will be able to claim the first two stimulus payments as a credit on my 2020 taxes. However, I am worried about the latest American Rescue Plan stimulus amount of $1,400. I cannot process my 2020 taxes until the TurboTax updates their software. Will those of us in my situation miss out on this $1,400 due to the delay in updating the software? 

[ReneeM7122]

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.

Here is a TurboTax article about the American Rescue Plan

@Tanya14

[dbadkn12]

Please send me a link where you read that the updated MD tax form will be available on March 25th

Thanks

[gloriah5200]

Please clarify which Maryland tax form you are asking about being updated and released on March 25, 2021.

[dbadkn12]

Do you know when will Turbo Tax will have updates for Maryland Unemployment Income tax waiver for 2020

See below

Beginning with Tax Year 2020 and including Tax Year 2021, the Act exempts from the state income tax the UI benefits received by an individual earning less than $75,000, and couples filing jointly or individual heads of households earning less than $100,000.