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

[MichelleLO]

I apologize for your frustration. We are not able to provide an estimated date at this time. The software is being updated for all states and will be released as soon as possible. In the interim, please use the link in the below Help Article to sign up for progress status updates. 

How do I claim the new unemployment benefits in TurboTax?

[NeuroPsyche]

I think that employee gave you a load of BULL$hit 

Think about it! Why wouldn't that same legislation effect H&R block who HAS the updates?

Why wouldn't that same legislation effect other forms of TT, the ONLINE version, that has the $10,200 tax exception updates? 

I think your brain may not have been processing when you posted that message. 

[txmet]

Employee TurboTax Specialist MichelleLO
Employee TurboTax Specialist

I apologize for your frustration. We are not able to provide an estimated date at this time. The software is being updated for all states and will be released as soon as possible. In the interim, please use the link in the below

They can update the federal one without the states .  Why arent they doing that so at least the federal returns can be file,  My state is not affected by this yet, i am unable to file federal becuase turbotax  desktop is the ONLY software not to update

[MRoles]

March 25th ***UPDATE****  This was brought to my attention!

  While this will exclude the unemployment from the AGI,  the Rescue Act specified 8 other tax and credit calculations that depend on the AGI were NOT to be affected by the Act.

In other words, simply entering this way can make 8 other calculations inaccurate.     That is why it must be done in the software so those other calculations will use the AGI without regard to the change of the Unemployment Compensation Exclusion.

(The IRS worksheet was for paper returns and entering the change in a piece of paper will not change other calculations, but entering as misc income will change anything that depends on the AGI.)

Per the Act (and 1-8 below are sections NOT to be changed by the exclusion)

“(2) APPLICATION.—For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined—

“(A) after application of sections 86, 135, 137, 219, 221, 222, and 469, and

“(B) without regard to this section.”.

(b) Conforming amendments.—

(1) Section 74(d)(2)(B) of the Internal Revenue Code of 1986 is amended by inserting “85(c),” before “86”.

(2) Section 86(b)(2)(A) of such Code is amended by inserting “85(c),” before “135”.

(3) Section 135(c)(4)(A) of such Code is amended by inserting “85(c),” before “137”.

(4) Section 137(b)(3)(A) of such Code is amended by inserting “85(c)” before “221”.

(5) Section 219(g)(3)(A)(ii) of such Code is amended by inserting “85(c),” before “135”.

(6) Section 221(b)(2)(C)(i) of such Code is amended by inserting “85(c)” before “911”.

(7) Section 222(b)(2)(C)(i) of such Code, as in effect before date of enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, is amended by inserting “85(c)” before “911”.

(8) Section 469(i)(3)(E)(ii) of such Code is amended by striking “135 and 137” and inserting “85(c), 135, and 137”.

 The following 8 areas are NOT to exclude the Unemployment Income from the AGI and therefore, the below direct input instructions into the TT software is NOT advised:

Social Security

Savings Bonds

Adoption

Retirement Savings

Interest Education Loans

Tuition Expenses

Passive Activity Losses & credit limits

Certain State Returns

Instructions on how to enter your calculation from the 

"Unemployment Compensation Exclusion Worksheet" provided by the IRS,

into TT desktop software ONLY!  and NOT tax advice!

This works! 

First,  go the the link below and print the Instructions and the "Unemployment Compensation Exclusion Worksheet" from IRS.gov

               https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation

You MUST complete the "Unemployment Compensation Exclusion Worksheet" to correctly calculate the exclusion, if any!           Keep for your records!

I am using TT Home & Business but this should work with all TT-

Below I have instructions for "Step-by-Step" AND "Forms" view:

Using "Step-by-Step" view

"Personal Income"

      "Unemployment Income"  -Enter Form(s) 1099G (this is line 7 of Schedule 1)

Scroll down to

        "Miscellaneous Income 1099-A, 1099-C" 

             Scroll down to 

                    "Other Reportable Income"  (this is line 8 of Schedule 1)

                                Description box enter "UCE"

                                Next to the appropriate tax payer, enter the result from line 10 of the

                                "Unemployment Compensation Exclusion Worksheet" provided from IRS.gov 

                                If the result is less than zero, input as a negative (EXAMPLE: $-6,412.00)

Or if you wish, you can input directly on the supporting documents:                           

Switch over to "Forms" View

Select "Schedule 1" from the list of Forms located on the left

               "Part 1 Additional Income"

                 (you should see an amount on line 7 entered from Unemployment 1099-G input )  

                Go to line 8 and hit the magnifying glass...this takes you to "Part 1 of Additional Income"                    on form 1040/1040SRwks

                              Select line 8 and hit the magnifying glass....this takes you to

                               "Other Income Statement line 8"

                                    Scroll down to line 22....place the answer from line 10 of the "Unemployment                                              Compensation Exclusion Worksheet" (provided by the IRS) and note                                                        "UCE" on the line description.   

                                   If the result is less than zero, input as a negative (EXAMPLE:   $-6,412.00)

(Hint: This is the same area you would report a NOL deduction.  You MUST complete the "Unemployment Compensation Exclusion Worksheet" (provided by the IRS) to calculate the deduction amount, if any)

This is instructions on how to enter your calculation from the IRS provided "Unemployment Compensation Exclusion Worksheet" into TT desktop software ONLY!  It is NOT tax advice!

[#5]

March 25th ***UPDATE****  This was brought to my attention!

  While this will exclude the unemployment from the AGI,  the Rescue Act specified 8 other tax and credit calculations that depend on the AGI were NOT to be affected by the Act.

In other words, simply entering this way can make 8 other calculations inaccurate.     That is why it must be done in the software so those other calculations will use the AGI without regard to the change of the Unemployment Compensation Exclusion.

(The IRS worksheet was for paper returns and entering the change in a piece of paper will not change other calculations, but entering as misc income will change anything that depends on the AGI.)

Per the Act (and 1-8 below are sections NOT to be changed by the exclusion)

“(2) APPLICATION.—For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined—

“(A) after application of sections 86, 135, 137, 219, 221, 222, and 469, and

“(B) without regard to this section.”.

(b) Conforming amendments.—

(1) Section 74(d)(2)(B) of the Internal Revenue Code of 1986 is amended by inserting “85(c),” before “86”.

(2) Section 86(b)(2)(A) of such Code is amended by inserting “85(c),” before “135”.

(3) Section 135(c)(4)(A) of such Code is amended by inserting “85(c),” before “137”.

(4) Section 137(b)(3)(A) of such Code is amended by inserting “85(c)” before “221”.

(5) Section 219(g)(3)(A)(ii) of such Code is amended by inserting “85(c),” before “135”.

(6) Section 221(b)(2)(C)(i) of such Code is amended by inserting “85(c)” before “911”.

(7) Section 222(b)(2)(C)(i) of such Code, as in effect before date of enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, is amended by inserting “85(c)” before “911”.

(8) Section 469(i)(3)(E)(ii) of such Code is amended by striking “135 and 137” and inserting “85(c), 135, and 137”.

 The following 8 areas are NOT to exclude the Unemployment Income from the AGI and therefore, the below direct input instructions into the TT software is NOT advised:

Social Security

Savings Bonds

Adoption

Retirement Savings

Interest Education Loans

Tuition Expenses

Passive Activity Losses & credit limits

Certain State Returns

Instructions on how to enter your calculation from the 

"Unemployment Compensation Exclusion Worksheet" provided by the IRS,

into TT desktop software ONLY!  and NOT tax advice!

This works! 

First,  go the the link below and print the Instructions and the "Unemployment Compensation Exclusion Worksheet" from IRS.gov

               https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation

You MUST complete the "Unemployment Compensation Exclusion Worksheet" to correctly calculate the exclusion, if any!           Keep for your records!

I am using TT Home & Business but this should work with all TT-

Below I have instructions for "Step-by-Step" AND "Forms" view:

Using "Step-by-Step" view

"Personal Income"

      "Unemployment Income"  -Enter Form(s) 1099G (this is line 7 of Schedule 1)

Scroll down to

        "Miscellaneous Income 1099-A, 1099-C" 

             Scroll down to 

                    "Other Reportable Income"  (this is line 8 of Schedule 1)

                                Description box enter "UCE"

                                Next to the appropriate tax payer, enter the result from line 10 of the

                                "Unemployment Compensation Exclusion Worksheet" provided from IRS.gov 

                                If the result is less than zero, input as a negative (EXAMPLE: $-6,412.00)

Or if you wish, you can input directly on the supporting documents:                           

Switch over to "Forms" View

Select "Schedule 1" from the list of Forms located on the left

               "Part 1 Additional Income"

                 (you should see an amount on line 7 entered from Unemployment 1099-G input )  

                Go to line 8 and hit the magnifying glass...this takes you to "Part 1 of Additional Income"                    on form 1040/1040SRwks

                              Select line 8 and hit the magnifying glass....this takes you to

                               "Other Income Statement line 8"

                                    Scroll down to line 22....place the answer from line 10 of the "Unemployment                                              Compensation Exclusion Worksheet" (provided by the IRS) and note                                                        "UCE" on the line description.   

                                   If the result is less than zero, input as a negative (EXAMPLE:   $-6,412.00)

(Hint: This is the same area you would report a NOL deduction.  You MUST complete the "Unemployment Compensation Exclusion Worksheet" (provided by the IRS) to calculate the deduction amount, if any)

This is instructions on how to enter your calculation from the IRS provided "Unemployment Compensation Exclusion Worksheet" into TT desktop software ONLY!  It is NOT tax advice!

[solaria_galaxia]

Thanks I just may try that out, not so much to file as to see where I’m with quarterlies.

[txmet]

this is what i received back when i asked them on facebook if it will be in the update scheduled for 3/25-26

We do not have a date/estimated date at this moment. Please continue to check for product updates throughout the week.

and based on the lack of dates provided by the "employee experts"  on this site  the 3/25 date looks unlikely despite what some of the non-employees have been posting on this site.  I asked several times on the facebook if that means it wont be in the update, they've ignore that  part and keep saying to sign up to get notified.  

I feel bad for these employees as i'm sure they are being told not to provide  or deny a date and instead used canned words like, highest priority, soon, check back, sign up to be notified.  all vague and worthless 

[macuser_22]

@MRoles  There is a problem with that. 

   While that will exclude the unemployment form the AGI,  the Rescue Act specified 8 other tax and credit calculations that depend of the AGI were NOT to be affected by the Act.

In other words, simply entering that way can make 8 other calculations inaccurate.     That is why it must be done in the software so those other calculations  use the AGI without regard to the change.

(The IRS worksheet was for paper returns and entering the change in a piece of paper will not change other calculations, but entering as misc income will change anything that depends on the AGI.)

Per the Act (and 1-8 below are sections NOT to be changed by the exclusion)

“(2) APPLICATION.—For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined—

“(A) after application of sections 86, 135, 137, 219, 221, 222, and 469, and

“(B) without regard to this section.”.

(b) Conforming amendments.—

(1) Section 74(d)(2)(B) of the Internal Revenue Code of 1986 is amended by inserting “85(c),” before “86”.

(2) Section 86(b)(2)(A) of such Code is amended by inserting “85(c),” before “135”.

(3) Section 135(c)(4)(A) of such Code is amended by inserting “85(c),” before “137”.

(4) Section 137(b)(3)(A) of such Code is amended by inserting “85(c)” before “221”.

(5) Section 219(g)(3)(A)(ii) of such Code is amended by inserting “85(c),” before “135”.

(6) Section 221(b)(2)(C)(i) of such Code is amended by inserting “85(c)” before “911”.

(7) Section 222(b)(2)(C)(i) of such Code, as in effect before date of enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, is amended by inserting “85(c)” before “911”.

(8) Section 469(i)(3)(E)(ii) of such Code is amended by striking “135 and 137” and inserting “85(c), 135, and 137”.

[Anonymous]

Too late too little

i will ask for a refund from Costco 

I will share these threads again Nov Dec of this year to warn any prospective buyers of the Mac Desktop version to not purchase

[Anonymous]

TT should offer the online version free to all who purchased the Mac Desktop version and are getting screwed by TT

[EA12]

So it seems if TT fails to include the desktop unemployment update in their 3/25 update release one other option is to move to another company like H&R Block which is troublesome for anyone we owns a business and has already completed their taxes on TT or to simply file as is and hope that the IRS makes the correction and adjusts the filing.

For those who have not yet received their $1400.00 pandemic relief payment the latter may at least speed that process up.

In my humble opinion if TT was going to release the desktop update we are all waiting for on 3/25 they would be shouting that news to the rafters to shut us all up!

[Anonymous]

Posted on Costco site under product review Do not buy as of 3/25 this software is useless it is outdated and TurboTax has failed to update 

[drwyatt1976]

By its actions Intuit is saying they do not want the desktop / download bisuniess.

I am a smll biz software developer and I can clearly see the reasons.

1. The online version is more profitable, everyone pays full price.

2. They have cut the desktop staff and outsourced to cheap international internet developers.

3. They can more easily sell everyones data in a meta-data format.

I buy the desktop products and paperfile both personal and business.  The writing on the wall says Intuit will not be supporting desktop in the future.

Without a timeline from Intuit, its time to move away from all thier products, QB, TT, Mint, Payroll... ALL OF IT.

Short sighted management thinks we are sheep to be sheared every year.

Slow updates is your spanking for not giving them all your data.

[Anonymous]

Posted on Costco site for reviews

Do not buy as of 3/25 this software is useless it is outdated and TurboTax has failed to update

[NeuroPsyche]

Yes, typical of a big $$$ corporation. 

Cloud costs them much, much less. It's much like Verizon.

They abandoned land lines when they found the gravy-train in cell phones.

No wires to replace, no trucks and buckets to get on the poles, no poles... sad thing is that Verizon is letting their wires fall down.

Will TT also abandon us? 

[Laffusrcu]

Does anyone know if TurboTax taxes  can be imported into HRBlock