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DEBLEE2001
Returning Member

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

i would al.so like to know about the state tax break on unemployment

 

JeanneLO
Employee TurboTax Specialist

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

Please see this TurboTax FAQ to see how your state is handling the unemployment taxes and what your next steps are: How is my state taxing unemployment income?

@DEBLEE2001

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loismcswain
Level 3

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

Unfortunately, the list provided by TurboTax for my State (Missouri) didn't tell me much so I went to my state's web site & it told me that  I have to amend my state return in order to get my overpayment back. So don't rely on Turbotax info. Turbotax did however finally let me amend my state taxes. I sent it in a week ago & can only hope that it is correct!

sssnake
Level 3

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

Nothing more to do at this point except wait on the IRS to start those refunds coming in May. I had filed both my Federal and State electronically back in February and paid the Feds about 1150 bucks and my state about 550. Well my state is doing the same thing the Feds are, they are pulling early filers' returns and issuing refunds after correcting them. 

 

What is strange is that ever update TT has given over the last 3 weeks that I download on Thursday morning as I did today changes my amounts. First update i was getting approx. 800 refund from Feds and about 20 back from state. A week later I was about 1100 refund from Feds and now owed the state 25. Today's update now show me getting about 1200 from Feds and now owe the state 35. Kind of comical. I just wonder if all of these people so quick to get their returns sent off even though extensions were granted, are actually updating their TT every week to see if the numbers are changing. It would be interesting to know. 

maestrowork
Level 3

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

It's always good to check the source of information which is federal IRS and states.   TurboTax is a software company.  They should not be your source of tax-related information.

 

 

maestrowork
Level 3

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

Since you've already filed, TT may not be updating your returns or if it does, it may not be correct, since your filing status is COMPLETE.

 

 

SolomonMan
Level 2

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

All,

A Update of sorts for the State of Ohio concerning the Stimulus Changes.

 

I was about to file my paperwork with the State of Ohio as a Amended return after I spoke to a fellow in early April from the State of Ohio. The fellow at that time mentioned that I could Amend and send it in today as they were not concerned with the Federal Goverment Adjustments to AGI for unemployment as it would take months for all of it to "settle" and the State to get the verification information (for AGI) they would need. As this change was well known it would be "handled".

 

So today I called to get a verification on a SD100 (School District) amended return  and I was told I would have to wait till after I receive my federal paperwork stating the change due to the stimulus...which appears will be a minimum, the last I heard was late spring to summer's end. Before I could file my Ohio State 1040IT and SD100 Amended returns.

 

<My Rant/Questioning>

With the State telling me I have to wait to the Federal is done and then file my Ohio state Amends which according to #4 in the link below is 180 days possibly then I may get my corrected <which is Now> refunds by next year. ( I previously filed,paid, and everything cleared more than a month ago).

 

https://tax.ohio.gov/wps/portal/gov/tax/help-center/faqs/income-amended-returns/income-amended-retur...

 

I should mention that the fellow on the phone said it was very possible to be waiting that amount of time. I should mention I am ok with this fact as my case is not a large amount of money but this really really surprised me.

 

Anybody experiencing similar wait times or heard similar from the State of Ohio?

 

Also is there a way to change the State (Ohio) to check the Amended Checkbox? When the PDF prints it does not display the checkbox (not filled in to allow me to check later). 

 

Thanks

Chris

 

 

 

 

 

KathrynG3
Employee Tax Expert

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

 

Yes, the wait time is inevitable due to all the retroactive tax law changes mid tax season. 

 

The amended return should have been prepared when triggering amending the federal return. It is not clear why the state did not automatically check the box to amend. But, perhaps the amendment is not needed. For stimulus payments corrections and unemployment income taxation corrections, the IRS specifically asks that amendments are not filed. The IRS intends to automatically make the necessary calculation corrections. 

 

Since you have contacted Ohio directly, it would appear from your comments that you did need to amend and that there is nothing to do but wait. 

 

For more information, see: 

Ohio Income Tax Update: Changes in how Unemployment Benefits are taxed for Tax Year 2020

New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service

2020 Recovery Rebate Credit — Topic G: Correcting issues after the 2020 tax return is filed | Intern...

dorl
New Member

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

I cannot up my 2020 turbotax and it will not let me into program

Cynthiad66
Employee Tax Expert

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

Your question @dori is unclear.  Have you filed already and want to amend or are you trying to file with the new Unemployment laws?

 

FYI,  The software is updated for those that still have to file.  However, if you have filed already, the IRS ask you not to file an amended return as they are automatically making the adjustments and refunding the difference.

DEBLEE2001
Returning Member

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

I amasking about my state taxes I filed before the new tax law will turbo tax be amending my state tax or is there a new update i need to file for the unemployment tax break

 

 

Ty50
New Member

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

What’s the delay with correcting DC,  MD and West VA taxes for the state? I check the link and these have not yet been updated.

penningtonM7138
New Member

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

New member

 

We are facing a situation in that we sent in our Federal Revenue check payment before the unemployment rescue plan forgave the first $10,200 of unemployment benefits which is now is not taxed. 

 

We sent the Federal check but in however we did not file. We filed today and noticed that our return now has a small refund. With some checking instead of owing we got a refund because of the unemployment income was cancelled out.

 

I don't believe there is a way to amended our return given we just filed today and it has the forgiven unemployment income.

Any suggestions on how to handle this and get my overpayment back?

Thanks, Mike

DavidD66
Employee Tax Expert

Will Turbotax be updating it's software to account for the change in the taxation of unemployment benefits in 2020 and, if so, when?

Do not file an amended return.  Do not contact the IRS, it won't speed things up.  If you didn't update your return to reflect the payment you sent, you will just have to wait for the IRS to reconcile your account.  They will realize your total payments were more than the total tax you owed, and they will send you a refund.  In normal times, I would say this process will probably take two to three weeks; however, given the current state of the IRS, it's anyone's guess how long it will take.

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