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

[Northern Gal]

Spouse and I both made over $10,200 in unemployment 2020 as well as income, but we still are under the $150 K. We filed married filling jointly already. When the system is updated and we amend our return, is it $10,200 for the total household or for each person that collected unemployment? 

[Northern Gal]

I found the info, we both will be able to claim it, also, since we already filed, we should wait until the IRS has figured out what to do. 

https://www.kiplinger.com/taxes/602429/unemployment-tax-break-dont-amend-your-2020-tax-return-yet-to...

[Cheryl33]

The IRS has actually provided the form.  To use this form since Turbo Tax has not updated.Download the forms you have used in turbo tax and hand do your taxes and mail in.  Will save you the turbo tax fee if you don’t want to wait until Turbo tax decides to update. 

[Laffusrcu]

They did provide the form of exclusion but not in PDF format just a table of how to calculate it .

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[Share-Bear]

Has anyone had any luck filing taxes yet and receiving the tax break for unemployment (up to 10,200?) I did our taxes (haven't filed yet) and keep checking back thinking it will update the correct refund amount but nothing has changed for me. I guess I just would like to know what we need to do and how long this could take? 

[philmckracken911]

Hey Cheryl 

As a former government state auditor I would highly recommend against filing a paper return anywhere given the virus situation. The returns that come in with checks Will get processed first And all the refund request will be opened and thrown in a pile. If you’re looking for a refund just wait until the software is ready and pay the turbo tax free you’ll be way happier in the end. 

[duerzd696]

It seems to me that if this is an exclusion - then why not use the TurboTax box which asks for repaid unemployment.  This should do the trick - I think?

[kfrantze]

The IRS has now said that people who have already filed should not file amended returns, and that a form will be coming for those who have already filed.

[Laffusrcu]

Where did you get the information from about IRS releasing the form for the ones that filled already ?

[kfrantze]

https://www.accountingtoday.com/news/irs-offers-guidance-on-unemployment-benefits-exclusion
"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. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance."
I guess they don't know what we're doing if we already filed.

[Niki Sanders]

I went through process of entering my information into TT. When I got to the review section there was a prompt informing me that they were working on implementing the American Rescue plan changes.  It then gave me two options:

1. File now 

2. Wait until the changes had been implemented. 

I selected 2. The screen then informed me that it would send me an email when the changes had been made and that it would automatically make the necessary adjustments for me, all I would have to do is review and submit. 

Not exactly what you were looking for I'm sure, but at least you know you can input your information at this point and that the text software will make the adjustments for you. 

Hope that helps!

[Laffusrcu]

Yes they did provide work sheet for the ones who did not file .

And for the ones that already filled , we should not amend taxes and got to wait for IRS guidelines and there is no form at the moments . 

[kmnapoli1]

how did you do the exclusion in TT?

[kmnapoli1]

How do you do in Premier?

[Miss PI]

IRS published how to exclude unemployment benefits.  To enter a negative number of the maximum allowed on line 8 of Schedule 1 worksheet.  Turbo Tax program will not let me enter this in the form or in Easy Step.  I don't need to wait to file an amended file if TURBO TAX can update their program software.   When may I expect this to be accomplished?