Is the unemployment tax credit in effect yet?? Will turbo tax update this info automatically?? First 10,200 is tax free??

Until the President signs the legislation there has been no changes to the tax code.

 

The legislation only would affect a federal tax return.  The various states that tax unemployment compensation would have to make changes to their own tax codes and only if they so desire.

 

TurboTax nor any other tax preparation software company can do anything until 

After

 the IRS has written the rules and regulations after passage of legislation which changes the tax code.

The president has signed it, so when will turbo update the program?

The tax treatment is still being determined at this point by the IRS.  Accordingly the newly passed legislation, the first $10,200 on unemployment earned in 2020 would be considered nontaxable if your household income is less than $150,000.

 

IRS Statement on American Rescue Plan

 

Once the IRS issues some guidance, TurboTax will be able to update their software accordingly.  

 

How will the 3rd stimulus affect me