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

[Bruingrad]

Hi.. thanks for all the info and signed up for the email update. But, if we are using TurboTax online, can we start on our taxes and put everything in and just not finish/file until after the update? Will the update then reflect if we sign back in? Or do I need to wait and do the taxes completely once the update is done?

[cocobee6]

from the IRS website:

"Note. If your modified adjusted income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021 excludes from income up to $10,200 of unemployment compensation paid to you in 2020. For married taxpayers, you and your spouse can each exclude up to $10,200 of unemployment compensation. For example, if you were paid $20,000 of unemployment compensation and your spouse was paid $5,000, report $25,000 on line 7 and report $15,200 on line 8 as a negative amount (in parentheses).  The $15,200 excluded from income is $10,200 for you and all of the $5,000 paid to your spouse. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation. Use the Unemployment Compensation Exclusion Worksheet to figure your modified AGI and the amount you can exclude."

Can't Turbo tax figure out a way to implement this procedure on their forms?  If you file by paper and can put the full amount of your UI for 2020 on Line 7 and then deduct the $10,200 for a single (and the other calculated amount for Married).  This should be able to be automatically added to the entries for those lines as a deduction by filing status (Single or Married) that we have already entered in the beginning.

Just update your software to do this.

I do not want to file my taxes and wait for a refund.  I owe a large ta bill and would like to get this deducted prior to filing to reduce my amount due.

Waiting for an amendment by the IRS and refund is ridiculous when you have the info you need  for filling out the return lines right from the IRS website now.

[Laffusrcu]

It seems like someone on Reddit got answer on when Turbo Tax will release update and they responded 3.19 

Here is link :

https://www.reddit.com/r/Unemployment/comments/m6qx7n/other_turbo_tax_unemployment_update/?utm_sourc...

[wdunn]

So if i -$10200 on sch 1 in other income and put it on line 8 of 1040-sr it will reduce my social security income when i add line 8 to my SS worksheet.  Very confusing

[DoninGA]

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@wdunn wrote:

So if i -$10200 on sch 1 in other income and put it on line 8 of 1040-sr it will reduce my social security income when i add line 8 to my SS worksheet.  Very confusing

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Please wait for the software to be updated and do not try and manually change your tax return.

See this TurboTax support FAQ for information for the unemployment compensation exclusion - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

Also see this IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[dcguy83]

I received this update this morning from Turbo Tax. I have been waiting an update from them just like many others so I thought I would share.

Dear TurboTax Customer,
 
We're working around-the-clock to make updates to TurboTax based on the recently-enacted American Rescue Plan so you can file with confidence and get your maximum refund.
 
You indicated a preference to wait for a product update related to Unemployment benefits. Because of this, we're informing you we expect TurboTax to be updated on Friday (3/19) to include the new federal tax relief calculations. Please login to your TurboTax account to continue when you are ready.
 
Thank you for being a TurboTax customer.
 
Sincerely,
The TurboTax Care Team

[Jama2315]

Will the update on 3/19/2021 apply to TurboTax Deluxe edition?

[DoninGA]

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@Jama2315 wrote:

Will the update on 3/19/2021 apply to TurboTax Deluxe edition?

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The update will be across All TurboTax editions.

[Bcoop9519]

Just had a call with turbo tax customer service, They'll be releasing a large update March 25th.  All the information, and forms should be available then. She told me to keep checking back though because it could come sooner as well. 

[whiteout0320]

Is turbo-tax updated and ready for new Unemployment compensation break that was just announced last week (first $10200 exempt from tax)? 

[DoninGA]

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@whiteout0320 wrote:

Is turbo-tax updated and ready for new Unemployment compensation break that was just announced last week (first $10200 exempt from tax)? 

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See this TurboTax support FAQ for information for the unemployment compensation exclusion - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

Also see this IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[kategordon]

If you guys do not hurry up, then Ill be forced to file another way because the guidlines are out!

I need to send in my tax to the PPP people and before that to EIDL in order to recieve what I need. All this takes time, especially EIDL can you do someting faster? I mean if this dosent happen today I can no longer stay on Turbo Tax.

[kategordon]

sure they have BUT....Unless you are going to file through the mail and want to down load the 111 page booklet....I dont know how this is saving us any time? Maybe I could take this to my local senior center and (HOPE) they get it right...its a freakin mess when you have UI taxes and are no longer able to file on line. Ill miss the deadlines for EIDL and also for PPP due to this delay

Any thoughts? Do you know of a way to go online with my paper filings?????

[DoninGA]

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@kategordon wrote:

sure they have BUT....Unless you are going to file through the mail and want to down load the 111 page booklet....I dont know how this is saving us any time? Maybe I could take this to my local senior center and (HOPE) they get it right...its a freakin mess when you have UI taxes and are no longer able to file on line. Ill miss the deadlines for EIDL and also for PPP due to this delay

Any thoughts? Do you know of a way to go online with my paper filings?????

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A software update is scheduled for 03/19 for the unemployment compensation exclusion.

See this TurboTax support FAQ for information for the unemployment compensation exclusion - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

Also see this IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[kategordon]

OK THANKS BUT>>>>>that software update has not been updated YET.....on Turbo Tax Self empLoyment. What is this professional version you speak of? Does it cost many hundreds of dollars and would it make sense for me to use it? I grossed 869.00 after expenses on my self employment. I did recieve over payment amount of UI and PUA and my tax bill is  $4,509.00 ...My god  the 10,200 exclusion needs to happen by TODAY!  I WILL NOT BE ABLE TO APPLY FOR EIDL  and further no PPP and it takes 10 days for EIDL confirmation that puts me at March 27 or 28 then PPP deadline is March 31....this is a difference of receiving 0 dollars to run my business in 2021 or over 30,000....PLEASE HURRY UP!