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deb80
New Member

Is turbotax updated for the new no taxes on unemployment?

 
3 Replies
KrisD15
Expert Alumni

Is turbotax updated for the new no taxes on unemployment?

No, after the bill is signed into law, there should be an announcement as to how the IRS wants to handle that issue. 

 

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annajoe803
Level 6

Is turbotax updated for the new no taxes on unemployment?

You're kidding, right?  It hasn't even been signed into law yet!!

JohnB5677
Expert Alumni

Is turbotax updated for the new no taxes on unemployment?

If you've filed your return, do not do anything yet.  If you haven't filed you should file as usual, and include the full amount of the 1099-g..

 

The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of economic impact payments, including the unemployment benefit wil be forthcoming.

 

The IRS strongly urges taxpayers not to file amended returns related to the new legislative provisions or take other unnecessary steps at this time. The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable.

 

For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return.

 

TurboTax is developing the software required to process all of the new conditions.

 

 

@deb80 

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