New Exclusion of up to $10,200 of Unemployment Compensation

[Adanruiz3]

I filed my 2020 taxes already and on my 1099-g form that was less than 10,200  they took $540 for  line 4 and they also charged me  like 500 more.   I guest for taxes. ??

[KimCO]

The IRS made determination today about what the intend to do for people who’ve alrady filed.

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[helen_feddema]

NYS Senate Bill S5125A still in committee today (2:20 PM April 1)

[Northern Gal]

I already filed before the March update on unemployment, I already got my refund but know I will be getting more back at a later date.

question is, when I am logged into TT, it shows a higher amount for both federal and state (Michigan). Is that the TOTAL amount or the ADJUSTED ADDITIONAL AMOUNT that I will get?

[DawnC]

What you see in TurboTax is the total amount of your refund and it includes the amount that you have already filed for.  The federal portion that you have not already received (due to the legislation) will be refunded to you by the IRS and those refunds will start going out automatically in May.    

But the change in your AGI has also caused a change in your Michigan state return.   As of right now, Michigan has not said that they will process the changes and issue you the additional state refund without filing an amended state return.   So, although you don't need to do anything for the federal portion, you may need to for Michigan.   However, I would wait to amend the state return to see if Michigan will adopt a similar plan for those that filed before the legislation was enacted.   

@Northern Gal

[Northern Gal]

Thank you so much for explaining this and have a great Easter Weekend 🙂

[Laffusrcu]

Still waiting on TT to update Missouri so I can amend  my return ! 

[Hagerr0822]

The 10,200 did come off my federal return.  I am from KY.  I did have taxes taken out on federal and state.  

[DaveF1006]

It depends though. To clarify, What state do you live in? i 

[macuser_22]

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@Hagerr0822 wrote:

It seems there are going to be a lot of hot messes out there with the $10,200 exemption and some states.  People have filed before states have made a decision on the 10,200. Some states are allowing it and some aren’t.    Apparently, TT doesn’t know which state has allowed the exemption and which hasn’t.  With it being a federal exemption, you would think it would go for all states.  Anyway, if a return isn’t correct, I am sure it will be caught and a letter sent out.   Could result in a refund or could owe.  Sad not all states can do what the federal government is doing in a time of need.  

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Yep - and it could drag on for a long time.    Some states have introduced bills to follow the Federal but the legislator is in recess until September.

And Federal is the same.   The IRS have said that they will adjust refunds for people that have filed without the exclusion but should amend if the exclusion allows credits that they did not originally claim. But how can you amend to claim other credits without also claiming the exclusion that the IRS will adjust for you? 

Waiting for IRS guidelines.

[Birddog91]

I had to pay 2700 for under estimating my salary for health insurance purposes on the exchange.  This 10,200 will bring down my agi, do I need to send in an amended return for that?

[helen_feddema]

NYS Senate Bill S5125A still in committee today (11:30 AM, April 2)

[msaaj]

Turbotax in the past couple of days has updated it's verbiage about NY's tax to say the following:

"TurboTax calculations are correct and up-to-date for your state. You can go ahead and finish and file your state return."

Anyone know what has changed?  I still see NY Senate Bill S5125A as "In Committee". 

[Escape1960]

I filed my taxes already and received my refund before the Unemployment 10,200.00 credit with into effect. What do I do now, file an emend form?

[DoninGA]

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@Escape1960 wrote:

I filed my taxes already and received my refund before the Unemployment 10,200.00 credit with into effect. What do I do now, file an emend form?

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There is no need to amend the 2020 tax return for the exclusion.  The IRS will be handling the exclusion for you.  Go to this IRS website for information - https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...