Coming legislation

sdman67 · ‎March 11, 2021

I work part-time and own a small gardening business. My wife also works and is the primary earner. I didn't pay quarterly taxes because our deductions usually off-sets any profit the business makes. This year's unemployment benefits put a wrinkle in my reasoning. Since I would owe taxes and didn't pay quarterly taxes, I am also looking at a penalty, as I recall. With coming legislation taking away taxes due on unemployment, my question is, should I wait and possibly file an extension to avoid paying any taxes and penalties?

xmasbaby0 · ‎March 11, 2021

You are among millions who have now been affected by a mid-tax season change in the tax law. Patience will be necessary.

TurboTax will update the software for the unemployment but there is no timeline yet.

It can take weeks to several months or more for the changes to be made to tax software. First the IRS has to change its forms. The tax software has to be changed; the IRS has to test and approve of the software. Do not expect changes in the software to happen quickly. TurboTax may have more information in the near future AFTER the bill is signed into law, and some more details emerge about how Congress and the IRS will implement the changes.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**