Does turbo tax automatically deduct the new unemployment credit?

[DoninGA]

After the legislation has passed Congress and after the President has signed the legislation and after the IRS has written the rules, regulations and procedures.  And after the IRS has changed any forms or schedules to accept the tax code changes.  And after the IRS has approved the changes in the TurboTax program that apply to the tax code changes, then it will be available for the users of the tax preparation software.

This can take anywhere from several weeks to several months before it becomes available.

See this TurboTax support FAQ for information on the American Rescue Plan - https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

[Hal_Al]

No.

TurboTax (TT)  has not yet updated the software to do that.  There do not appear to be any form changes needed. 

But, the IRS has issued instructions, so TT does know what to do, So, far we haven't heard when.

If you can't wait, this workaround has been tested. But, any workaround carries some risk.

  In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

Scroll down to:

-Less Common Income

      -Misc Income, 1099-A, 1099-C

       - On the next screen, choose – Other reportable income  

       - On the next screen, click yes

       - On the next screen, you'll get blanks to enter the amount and a description. For the amount enter with a minus sign:  -10200. For description type UCE(10200). It will go on line 8 of Schedule 1 as a deduction (-).

*That assumes you’re entitled to the full $10,200 and your spouse doesn’t also have unemployment.   Reference: https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[kaiyeung]

I try on web version on pages for 1099-A, 1099-C.

>Let's Work on Any Miscellaneous Income>
>>Cancellation of debt (Form 1099-C) or the abandonment and/or acquisition of secured property (Form 1099-A)
>>>Tell us about your canceled debt

There are no such option to input Other reportable income for 1099-A/1099-C. Are turbo tax online going to modify system to allow input manually to 1099-A, 1099-C ? Or any other page should I input the UEC(10200)

[PattiF]

The forms for the IRS new Unemployment relief are not available yet. The 1099-C and 1099-A are not for this situation. 

Once  the IRS provides us with guidance on how we can provide them with the necessary information, we will work quickly to update TurboTax.

We will update this article with the latest information here. 

[Hal_Al]

On the screen >Let's Work on Any Miscellaneous Income>

Do NOT click start (or update) at  >>Cancellation of debt (Form 1099-C) or the abandonment and/or acquisition of secured property (Form 1099-A)

Scroll farther down the page to  >Other reportable income>