American Rescue Plan Act 2021 update not working for my Unemployment Income

[mistyroses4]

I am married filing jointly. My Gross income is below $80k. I have $5,290 of unemployment income. When I enter this amount in TT, my federal tax due amount goes up about $600 in the meter on the top of the screen. It says the American Rescue Plan act was applied but then why is my tax bill going up? I reset my tax forms and entered all over again and still same thing happens? What can I do? Would it make sense to get TurboTax live and have an expert fix it? Can they even fix it?

I at the end of the TT process and am at the file and pay screen. Should I just file it and maybe then will the unemployment income be excluded or credited?

[DoninGA]

The exclusion is reported on Schedule 1 Line 8 as a negative number.  The unemployment compensation received is on Line 7 of Schedule 1.  The result flows to Form 1040 Line 8.

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

[mistyroses4]

How do I access Tax Tools? I don't see it on the left side of the screen. I am using the online deluxe version of TT. Maybe another way to preview the 1040?

[DoninGA]

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@mistyroses4 wrote:

How do I access Tax Tools? I don't see it on the left side of the screen. I am using the online deluxe version of TT. Maybe another way to preview the 1040?

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Are you signed onto your TurboTax online account and accessing the 2020 tax return? - https://myturbotax.intuit.com/

Tax Tools is on the left side column along with the other links.  If you do not see this column then click on the 3 horizontal bars on the top left corner of the online program screen to open the column.

[mistyroses4]

Okay I got to the preview 1040 and I see the amounts on line 7 and 8 like you said. Line 7 is positive and Line 8 is negative. But, I still don't know why when I put in the unemployment income my federal tax due goes up about $600. Is there some kind of glitch in TT?

[mistyroses4]

update: I don't see anything on line 8 on the 1040. It says 0. But I do see numbers on line  7 and 8 on schedule 1

Line 8 on 1040 says "Other income from Schedule 1, line 9 :    $0  "

[DoninGA]

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@mistyroses4 wrote:

update: I don't see anything on line 8 on the 1040. It says 0. But I do see numbers on line  7 and 8 on schedule 1

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If the Form 1040 Line 8 is 0 and the Schedule 1 Line 7 and Line 8 are the same number only Schedule 1 Line 8 is negative then all of your unemployment compensation was excluded from your total income.  

So none of the Unemployment will have any affect on your tax return.

Is your adjusted gross income more than $150,000 - Form 1040 Line 11?

[mistyroses4]

It is less than $150k. It is so strange because when I remove the unemployment income item, my fed tax due in the top meter goes down $600. I would think regardless of if I enter in the $5,290 in or not...it should have no effect my my fed tax due

[DoninGA]

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@mistyroses4 wrote:

It is less than $150k. It is so strange because when I remove the unemployment income item, my fed tax due in the top meter goes down $600. I would think regardless of if I enter in the $5,290 in or not...it should have no effect my my fed tax due

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Correct it would have the same effect as not entering the unemployment compensation.

Contact TurboTax support and if needed they can do a screen share to see why this is happening.

Use this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/