Unemployment tax

[Zach1070]

I collected unemployment but did Not I have taxes withheld. I found my 220 taxes but I did not pay them yet I’m waiting till April 15 I just found out that the new stimulus package includes $10,200 of an appointment is tax free how is the IRS handling this Well I have to file an amended return

[MinhT1 · Accepted solution]

The new proposed bill is expected to exempt from taxation up to $10,200 of unemployment benefits received in 2020.

However, the bill is not enacted into law yet. Please be patient. When it becomes law, the IRS will provide guidance within two to three weeks on what taxpayers need to do. And TurboTax will always timely assist their customers.

[Lenardis88]

Do you know if you have already filed before this new 10,000 tax dedication went into effect, can you amend to get the credit?

[Zach1070]

yes but i will need guidance from irs which should happen within two weeks after the bill is signed into law

[howardk]

Ok the new stimulus plan is now law. I've been unemployed most of 2020. I collected more that $ 24,000 in unemployment and paid no taxes on that amount. How do I enter the $ 10,200 tax exemption on my 1040.

[JotikaT2]

It is still being determined at this point by the IRS.  Accordingly the newly passed legislation, the first $10,200 on unemployment earned in 2020 would be considered nontaxable if your household income is less than $150,000.

IRS Statement on American Rescue Plan

Once the IRS issues some guidance, TurboTax will be able to update their software accordingly.  

How will the 3rd stimulus affect me

[inc3000]

The bill has been enacted into law as of now. I tried filing my taxes but turbotax hasn't updated this yet....

[Techsourcer]

So here's a catch 22. I've not filed 2020 taxes yet. Waiting for Turbo Tax's updated info to account for the $10,200 reduction in tax liability related to unemployment.  With that reduction and adjusted taxes, I'll be eligible for the $1400 stimulus check- which are being processed now.  If I do not file my 2020 taxes, I will not be eligible for the check due to my income in 2019, changing siginificantly post layoff.  Any suggestions? Is it better to file now and then amend? 

[JohnW152]

The IRS hasn't provided guidance yet on how this will be addressed, but once it does, TurboTax will be updated to reflect the new laws. 

You can sign up for updates at How do I claim the new unemployment benefits in TurboTax?. 

[jnt603]

I filed my taxes before the new law took effect. however after waiting for the IRS to amend my taxes, the IRS did not amend my taxes. What should I do?

[Critter-3]

Hang tight ... if you only got the original refund  then you must wait for them to recalculate the return for the unemployment exclusion and send the additional refund if you are eligible for it ... nothing you can do but wait for the IRS to get to your return in the pile of millions of returns they have to get to.