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There is a software update scheduled for 03/19 for the unemployment compensation exclusion. Even if it comes out a few days later, it's still WAY BETTER than filing a paper return. You send in that paper return and be prepared to be posting on another thread how it's August and you still haven't gotten your money. Really.
Also, IRS just announced filing deadline is extended to 5/15/21.
I didn't file taxes last year, so the "get my refund" says nothing. That is the intent for filing as quickly as possible now. I could pay or not in my own time, but the 1400 will help a lot.
The worksheet will be for paper filers, and it's on irs.gov. Look for Schedule 1 i believe it was line 7
Great DoninGA. I'll come back in a couple of days and see if it works. Hopefully no beta bugs.
Yes, we have one.
If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here
Do not file your 2020 taxes if your are waiting for turbotax to update their software for New Exclusion of up to $10,200 of Unemployment Compensation. If at all possible wait... until turbotax update is released.
Taxes are being pushed back til May 17th. (https://www.bloomberg.com/news/articles/2021-03-17/irs-plans-to-delay-tax-deadline-to-mid-may-after-... so there is a month extra.
Also if you filed your 2020 already. The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time. (https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021)
@cloudywithachance Yes it’s the 19th . Thanks tho !
Someone “ tfritz1 “mention it’s already updated .
Well few more days then !
Since this is Turbo Tax's main product and source of income I would expect a simple change to one line on Schedule 1 that links to at most 3 other sections of the tax return shouldn't require more than a 100 lines of code, if that. If I were at customer service (or other designated department) at Turbo Tax to be monitoring IRS notices and updates from January 1 to tax filing day. This would ensure they are on top of changes. The second thing is to have a giant notice when you open Turbo Tax of critical changes. Or emails if you've registered your product. This is a customer service company after all.
I already filed my taxes, will TurboTax charge for me to do an amended return due to the unemployment tax exemption being issued by the IRS?
The IRS instructions tell how to process the $10,200 on line 8, but I cannot enter the information.
Yes IRS gives instructions if your filling out the paper work...in writing. But in TurboTax, they need to do an update to allow us to input that change. From my understanding from other posts in this forum. TurboTax is releasing that update tomorrow the 19th. Then with that software update was can make the change.
The IRS has already stated not to file an amendment tax for 2020. No defined instructions has been clearly given YET. But two possibilities can occur. Eith they advise us to amend it layer down the year or they will review the 45 million returns that were files before the law took place and correct themselves and issue you an additional tax refund. No clear instructions given yet other then to not file an amendment.
Yes, please wait.
We don't know if the IRS can re-run the returns with unemployment, but that seems like the logical solution.
We are also unsure how the different states are going to handle the change going forward.
@jeffrey1719 wrote:
The IRS has already stated not to file an amendment tax for 2020. No defined instructions has been clearly given YET. But two possibilities can occur. Eith they advise us to amend it layer down the year or they will review the 45 million returns that were files before the law took place and correct themselves and issue you an additional tax refund. No clear instructions given yet other then to not file an amendment.
The $10,200 unemployment retroactive to 2020 was just signed into law. Now the IRS is responsible for writing regulations and rules for claiming it.
Software changes do not happen overnight - it takes time to test, package as an update and fit into the existing update schedule. Probably a few weeks.
The IRS has yet to offer guidance for e-file providers. What the IRS published is for hand filled paper returns. Electronic returns are totally different and require IRS issued e-file specifications that both the e-file providers system and the IRS system are programed for so they can talk to each other. That takes a lot of development by the IRS to supply the e-file specifications for the change. e-file does not send forms it sends encrypted data.
There are still several issues that Congress did not address, for example the EIC credit, Child tax Credit, QBI credit, IRA contribution limit, and others, depends on income and AGI. With the unemployment exclusion from income how are those calculated - before or after the exclusion? The IRS must issue regulations and form changes to deal with that.
TurboTax can e-mail you when the change is ready.
https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...
https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...
Also see:
https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021
I think the Turbotax criticism here is really unjustified. It may look like a one line fix, but any modification takes time test in all situations. A week turnaround time does not seem unreasonable to me. I have plenty to complain upon how Turbotax has done some shady things over the years, but this is not one of them. The real issue here is changing tax rules so late in the game. I understand it is to help people, but sometimes the side affects are not always properly taken into consideration. My question is could this money have been given in a different way?
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