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

[kategordon]

YES BUT- those rules only apply to paper/ mail in filers, that is how you would get going on that. Not for Turbo tax online filers at all, we are missing EIDL and PPP deadlines which PPP apps are null and void after March 31, 2021 deadline.....so!!??? Please if you have any thoughts do reply!

[DoninGA]

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@kategordon wrote:

YES BUT- those rules only apply to paper/ mail in filers, that is how you would get going on that. Not for Turbo tax online filers at all, we are missing EIDL and PPP deadlines which PPP apps are null and void after March 31, 2021 deadline.....so!!??? Please if you have any thoughts do reply!

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There is a software update 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]

NO THEY ARE NOT!!!!!!!! only for paper filiers nothing for most people filing electronically!

[sunnydawnwatson]

From the link you referred us to they have a worksheet titled below that is supposed to work for the new rule is this in your current up

Unemployment Compensation Exclusion Worksheet – Schedule 1, Line 8

[Ang B]

Did/would you still enter your 1099 G form (I had taxes withheld, so I assume I still need to enter the info from form to recoup that withholding?)?   

[Ang B]

For me, they withheld taxes on my unemployment so I pretty much have to enter it (that 1099 G form) to get that part back.  

[shaleeamadeo]

Thank you for sharing this info 👍🏻

[kategordon]

Every one is saying to wait longer....the new Turbo tax form ( so that you can file online) a good choice since filing via paper is going to take (months) to approve your filing....That work sheet your talking about will not help with the turbo tax fiing will it? If it was all you needed why wouldnt Turbo Tax tell us to grab a booklet find the 1040 and the SE for self employment taxes and every confusing detail and complete the worksheet then upload all of it? I see a problem for many people trying to escape waiting for the simpler form....Any thoughts or ideas??? I received a note from Turbo saying that they will have the new form on their  Turbo tax by the 19th...Hope this helps...P.S Im not a tax pro, just a self employed person with UI overpayment status and ta current tax bill of over $4000.00 I had to pay taxes on my SS since the higher income made me include a full year of Social Security and be taxed on that as well. This is crazy

[tfritz1]

Considering this was just signed into law a mere 6 days ago,  Excellent job to Turbo Tax for getting this updated so quickly.  It is easy to lose sight of how complicated this can be.   Updated in days is outstanding.  

[Chibal03]

Getting what updated? Still tells me to wait till new stimulus updates are made before filing.

[laplander1]

By chance I caught the announcement of the exclusion just as I was going to send in my taxes.  Turbotax as of today, March 17, does not include the 10,200 exclusion of unemployment benefits. With it, I don't owe taxes on social security and from that, no income taxes at all.  Since my 1400 check will depend on the submission, and the difference between the tax filings are about 900 in taxes versus zero, a total credit of 2300; tax savings plus the 1400 check.  I am rather motivated to send in the paper forms.  I will wait a few days to see if the software is fixed, but it is a simple tweak to apply the exclusion. The paper forms are done. 

[Laffusrcu]

I don’t see anything updated ! 
is there a update out yet ? 

[cloudywithachance]

@Laffusrcu People have posted notifications from TurboTax that the update will be applied on the 19th.  I've also read that a big update to TurboTax will be applied on the 25th.

[gloriah5200]

I would caution you to mail a paper return to go to IRS at this time instead of waiting for them to put the details out so the software developers can implement the changes so you can e-file your return which can processes as quickly as 4 weeks or more.

When IRS is not backed up, it generally takes a minimum of 8-10 weeks to process a paper filed return.

If you "do the math" you can see that e-filing would generally save you 4 weeks or more than filing a paper return.

IRS is very busy right now.  On top of processing 2020 tax returns, they are also trying to put the new law into the Tax Code and issue the Third Stimulus Check, notify all the software developers on how to make changes to their software once they have each part into the IRC, and they are also still processing Paper filed 2019 tax returns.

Here is the message from irs.gov:

IRS link to Get my payment

2021 Economic Impact Payment Status Available

Find when and how we sent your 2021 Economic Impact Payment with the Get My Payment tool.

Find help with this tool with Frequently Asked Questions.

Get My Payment updates once per day, usually overnight. Do not call the IRS. Our phone assistors don't have information beyond what's available on IRS.gov.

Previous payment information is no longer available in Get My Payment. See First and Second Payment Status.

Where's My Refund

COVID-19 Mail Processing Delays

It’s taking us longer to process mailed documents including:

• Paper tax returns, and
• All tax return related correspondence.

We are processing all mail in the order we received it.

Do not file a second tax return or call the IRS.

[laplander1]

Turbotax ought to create an official reliable notification as to when the exclusion will be incorporated into the software.  2 days sounds good, 7 is a long time to create a minor fix.