Can I take the new $10,200.00 unemployment tax credit specifically on Turbotax?

[PattiF]

If you have already filed your taxes:

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.  The IRS will provide additional guidance about what you need to do to take advantage of this relief if you already filed your 2020 tax return. 

If you’d like to be updated when the information becomes available, please sign up here.

If you have not yet filed your taxes:

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.  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. 

[kaseylai]

Guys - they told us how on 3/13/21:

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[DawnC]

If you filing on paper, you can use the irs procedure to exclude the income.  If you are e-filing using TurboTax, you will need to wait until the software has been updated to reflect the new law.  

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

Related Information:

• Can I deduct federal taxes paid on my federal tax return?
• Can I deduct state or local income tax on my federal return?

[dtzak]

DawnC - when will TT be updated. Simple question. 

[DoninGA]

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@dtzak wrote:

DawnC - when will TT be updated. Simple question. 

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See this TurboTax support FAQ for information for the unemployment compensation exclusion - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

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

[jpmcnaul]

H&R Block programmed their software and online systems on the 18th, but Turbotax is still showing figures in both the software and the online system that doesn't reflect any programming for the unemployment exemption.  Why is TT so slow in updating its products?

[Irene2805]

If you haven't filed your tax return yet, we expect TurboTax to be updated later today (Friday, 3/19) to include the new federal tax relief calculations on unemployment benefits. [Releases are usually pushed later in the day.]

The adjustment to the taxable unemployment benefits will be on Schedule 1, line 8 of the 1040.

If you have already filed your return, the IRS has stressed to NOT amend at this time. We do not yet have updated guidance for those who have filed their returns.  Please see this TurboTax Help article:  How do I get the new unemployment benefits if I’ve already filed my taxes?  It has  the latest information and contains a link for you to sign up to be notified when changes occur.

@jpmcnaul

[jpmcnaul]

It's the 20th now and the desktop version of TT still hasn't updated for unemployment issue.

[ToddL99]

That is correct - the desktop version of TurboTax still hasn't updated for unemployment issue.

According to @DoninGA "The update for the UC exclusion was made available for the TurboTax online editions.  It is not currently available for the TurboTax desktop CD/Download editions."

We’re working hard to keep TurboTax up to date with the latest tax changes based on instructions we receive from the IRS.  To get updates on our progress, go to one of the following links to sign-up:

For customers who have already filed: How do I get the new unemployment benefits if I’ve already filed my taxes? 

For customers who have not yet filed: How do I claim the new unemployment benefits in TurboTax? 

[jpmcnaul]

Since most people who use the online version are using the free file and most if not all people who use the desktop versions paid $30-$100 for the programs, you'd think TT would prioritize their paid base and do that update first.  Not good.

[dfslater]

You cannot "override" the program.  Therefore until TT updates their program we are all screwed.   

[Irene2805]

We are working on incorporating the changes to TurboTax CD/DOWNLOAD as quickly as we can.  You can sign up here to receive an email notification when it has been completed. 

[Tim1234]

Irene

Why is it that those that file online with TurboTax can get their unemployment amount adjusted but not the PAID version?  Doesn't make any sense at all.  All I get when I call is a runaround blaming everyone else.

Why can your competitors make the adjustments but TurboTax can't?????  Are your competitors that much better than TurboTax?  I'm starting to wonder.  And I've used TurboTax for YEARS!!!!

[foulweathersal]

I am filing online and still cannot get the deduction.  Software is not fixed.