2020 TAXES WITH NEW UNEMPLOYMENT RULING

[RICK102]

Hello, it appears that Turbotax has updated its software to reflect the new way unemployment is treated for 2020.  The new numbers now appear with the latest software update.  Do I sit back and wait for both Federal and State to provide a refund?  Also, this affected my stimulus amount.  Does that difference get collected when I file my 2021 taxes?  thanks!

[RayW7]

I am not sure when your state forms will be updated but the IRS did provide this information. 

'The IRS has just released a statement saying that they will begin re-calculating tax returns with unemployment compensation in May and paying adjusted refunds or applying the adjusted amount to previous tax debts.  The IRS will process taxpayers claiming the $10,200 exclusion first, and later they will process married filing joint returns that are claiming the $20,400 exclusion and other more complicated situations.'

So do not file an amended return for the Unemployment Exclusion.

[fanfare]

IRS will process your return as originally filed.

You must pay the amount owed as shown on your tax return.

@RayW7 

Give one good reason this is not so.