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

[Jimksr]

As well as TurboTax Deluxe. It would be nice to just have some kind of time line or at least some idea as to when we can expect it.

[GeorgeHarrisonTaxMan]

Why didn’t Turbo Tax take car of their paying customers first!  They should have taken care of those who paid for the software, before taking care of those that got Turbo Tax for free.  I paid $74.27 for my Turbo Tax Premier and I’m still out of luck!  You’d think they’d take care of the customers who are paying their bills first!  UGH!

[msaaj]

I really don't share these concerns that people have here.  I am pretty confident Turbotax will role out the new version soon (probably day but days at worst).  What I am concerned about is what the IRS is going to do with my daughter's return that has already been filed?  What happens to her NY State return?  And for that matter, when/what will NY State do concerning this exclusion?  NY State has in the past not followed the gov't lead to pass on tax breaks to it's residents. For those questions I have very little confidence I will have an answer any time soon.

[jillaspencer]

I have filed my 2020 federal return with Turbo Tax and the amount we owe is scheduled to be taken from our account on 4/15.  However, we have over 18k in unemployment income.  With the new tax changes, much of that will not be taxable. 

1) Will the IRS still be taking our payment even though our tax liability will change significantly? and;

2) Only one of us received unemployment benefits but we file jointly, what is our exemption amount?

[alexander]

The Premier Edition still does not subtract (up to) the 10,200 before reporting it on Line 8 of the 1040.  

My State return (Virginia) begins with the 1040 AGI and *does* then subtract the unemployment.

Hopefully TT will correct the Premier Edition AND remove the state "additional" subtraction in the State form.

[claudia174]

This tells everyone to either continue using turbo tax in the future or try using other software. H&R Block upgraded their software last Friday and users have no problems already. While, we are still in limbo. I paid mine $99 + taxes and here we are...

[Hagerr0822]

Since you already filed, your money will pull out of your account.  Later, IRS will adjust it on their end.  Once the 10,200 applies, most likely you will see a refund.  Don’t do an amend tax return.   Unfortunately, you will have to wait on the IRS.   They are suppose to put out more info for people who filed already.  

[Hagerr0822]

You will pay taxes on 18,000 - 10,200 = 7,800.   So 7,800 of her unemployment will be taxed.   

[jillaspencer]

Thanks!

[jillaspencer]

That’s a bummer!   Is there any way to change the date they take my

payment?  It’s now scheduled for 4/15, but not now due until May of course. 

[UNINTENDEDACTOR]

have you all updated turbo tax to make adjustment automatically? I haven't been able to tell so far.  I expected changes. none thus far and schedule 1 line 8 have no entry

[txmet]

UNINTENDEDACTOR
have you all updated turbo tax to make adjustment automatically? I haven't been able to tell so far. I expected changes. none thus far and schedule 1 line 8 have no entry

free & online version was updated, those of us that paid for the desktop version of the software are still waiting and have not received any estimate from TT

[jillaspencer]

I use the home and business version on my laptop. I downloaded the latest changes and my amount owed did not change. 

[hugs4jesus]

 there was a problem where the AGI from last year's verification wasn't working, you were rejected and had to put in 0 to get it accepted.   But once you resubmitted federal successfully, it would not resubmit the state.     Wednesday's update fixed that, but not the Unemployment Compensation worksheet update.   They fixed it on the online version but not the application version.   What the update from Wednesday did is acknowledge the issue and pops up with a screen indicating you should wait.  That's what we're still waiting for - they said it was going to be fixed on Thursday but have said nothing since and it has not been fixed as of 3/21 9:53am.     H&R Block who did not make a commitment date for the fix has already updated their program interestingly enough....  Will make me rethink purchasing this program for next year.

[EA12]

I agree with the last post.  There was an update on the desktop CD / DVD version this week but it did not address the exclusion of the first $10,200 of unemployment received.

It is boggling to me that Intuit who with Quickbooks and Turbo Tax sells it self to small and medium business owners does not clarify what each update addresses.  As business owners, if WE treated our customers this way we would no longer be in business.  The losses from Covid are bad enough without this.

Communication is the key!!

When will the update to correct taxation for the $10,200 be released for your customers who purchased the desktop version of your product.

Most of your customers who received unemployment during covid are now missing their stimulus check because they have not filed their taxes due to your slow response,