We must wait for IRS direction at their request. With this new law, if your household income is less than $150,000, the first $10,200 of unemployment will be tax-free, but any amount you receive above that will be taxed. We must wait on the IRS for the way they want this to be handled. Please continue to use the links below to know the most up to date information. If you already filed your tax return do NOT amend at this time per IRS.
TurboTax can notify you when the IRS decides what they will do. https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve-already-filed-my-taxes/00/2081053
Thanks! But that’s for people who have already filed. Is it also not updated for those who haven’t filed yet?
I agree, that post did not answer the question of "when will turbotax update their software?" I got an email from Turbotax yesterday claiming that they "had my back" concerning this new legislation. I assumed that meant that they had made the necessary changes to the software to reflect the new law. So I went ahead, updated the software and filed my taxes. I guess that is what I get for believing TurboTax advertising.
We must wait for IRS direction at their request. With this new law, if your household income is less than $150,000, the first $10,200 of unemployment will be tax-free, but any amount you receive above that will be taxed. We must wait on the IRS for the way they want this to be handled. Please continue to use the links below to know the most up to date information. If you already filed your tax return do NOT amend at this time per IRS.
@Tom1129 It doesn't look like TurboTax has updated yet to reflect this change so your unemployment was still taxed federally when you filed. If you sign up below, they will let you know when/how you can amend your return to get this refund:
Since I filed and did not receive the updated unemployment change and there are a couple of other adjustments I need to make do I file an amendment?
Kathy
You do not need to amend for Federal.
IRS chief: Unemployment recipients shouldn't file amended tax returns - News Break
See these re State:
How is my state taxing unemployment income? (intuit.com)
Do I need to amend my state return to update my un... (intuit.com)
I received a message regarding unemployment benefit first 10,200 not taxed, can I still amend the 17,000 submitted?
Taxpayers only need to file an amended return if the recalculations make them newly eligible for additional federal tax credits or deductions not already included on their original tax return.
For taxpayers who already have filed and figured their 2020 tax based on the full amount of unemployment compensation, the IRS will determine the correct taxable amount of unemployment compensation. Any resulting overpayment of tax will be either refunded or applied to other taxes owed.
The agency will do these recalculations in two phases.
Phase one will begin in May. A timeline for phase two has not yet been announced.