If I didn’t work this year because I was out of work due to the Covid and collected unemployment but I’m still head of household and have the child credit well I still get a tax return if I

[xmasbaby0]

Did you have tax withheld from your unemployment?   Did you receive the stimulus checks?   Prepare a tax return and enter your unemployment.  Make sure you also go through the Federal Review section for the recovery rebate credit.   And make sure you go through the earned income credit section and see if the "2019 lookback" helps you get earned income credit or child tax credit.

UNEMPLOYMENT COMPENSATION

Unemployment compensation is taxable on your federal return.

You will have to enter a 1099G that is issued by your state.

Some states will mail out the 1099G.  Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.

Enter your 1099G in Federal>Wages & Income>Unemployment

Go through the screens very carefully, making sure to enter any federal/state tax you had withheld from the unemployment.

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-report-a-1099-g-for-unemploymen...

STATES THAT TAX UNEMPLOYMENT BENEFITS

AZ, AR, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, ME, MD, MI, MN, MS, MO, NB, NM, NY,NC, ND, OH, OK, OR, RI, SC, UT, VT, WV, WI

STATES THAT DO NOT  TAX UNEMPLOYMENT BENEFITS on the state return

AK, CA, FL, MT, NH, NJ, NV ,PA, SD, TN, TX, VA, WA, WY

The stimulus check is an advance on a credit you can receive on your 2020 tax return.  If something went wrong or you did not get the stimulus check in 2020, you can get it when you file your 2020 return in early 2021

The Recovery Rebate Credit will be found in the Federal Review section,  If you are eligible it will end up on line 30 of your 2020 Form 1040.

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

https://www.irs.gov/coronavirus/coronavirus-tax-relief-and-economic-impact-payments-for-individuals-...

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

[carolbpeter]

So - the relief bill passed today- has a piece that states UE up to $10,200 is NOT taxed.  As of now - I paid taxes on all of my unemployment last year.  Will TurboTax be making an update to compensate for this?  It's already March 10, and the April 15 deadline is looming - if this change will be made, I'll hold off.  But, I'm concerned about how this works for those of us who paid the taxes up front, and now the taxes are not due.

[Critter-3]

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.

For those who have not yet filed then they should WAIT for the correction to the program.  If  they are getting a refund once the correction is in then they should  put the return on extension if the fix is not in by 4/15.  If they owe then they should pay the new expected balance due with the extension form filed by 4/15.

For those who have already filed they MUST wait for the IRS to fully process their return before amending it ...

The software version of the 1040X is not available yet and will not be available until March 25 at the earliest and it can be efiled which will speed up  the processing time frame.   You have to wait for it----unless you would like to print the paper 1040X and prepare it by hand to mail in. 

https://www.irs.gov/pub/irs-pdf/f1040x.pdf

Expect the IRS to take 4- 6 months to process your amended return.