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

[cameronschu]

will TurboTax contact me when the updates are made? I already filed. I need to know when to amend my return.

[DoninGA]

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@cameronschu wrote:

will TurboTax contact me when the updates are made? I already filed. I need to know when to amend my return.

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

An amended return, Form 1040X, can only be printed and mailed to the IRS if the original tax return was not e-filed. The IRS will take up to 16 weeks or longer to process an amended tax return.

Before starting to amend the tax return, wait for the tax refund to be received or the taxes due to be paid and processed by the IRS.

See this TurboTax support FAQ on amending a tax return originally completed and filed using the 2020 TurboTax editions - https://ttlc.intuit.com/community/amending/help/how-do-i-amend-my-return/01/27439

The IRS Form 1040-X for amending a 2020 tax return is scheduled to be available on 03/25/2021 (subject to change)

[delphisuzanne]

IRS provided instructions on how to handle this adjustment. See New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service (irs.gov).

Why can't it be possible to do the entries manually on that schedule 1 according to instructions? 

Also how hard is it to deduct $10,200 from your unemployment benefits as long your are eligible ?

[DoninGA]

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@delphisuzanne wrote:

IRS provided instructions on how to handle this adjustment. See New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service (irs.gov).

Why can't it be possible to do the entries manually on that schedule 1 according to instructions? 

Also how hard is it to deduct $10,200 from your unemployment benefits as long your are eligible ?

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The software will be updated on 03/19 for the unemployment compensation exclusion. 

[delphisuzanne]

Thank You. 

[Laffusrcu]

So will see if the update comes tomorrow on 3.19 like TurboTax announced! 

[macuser_22]

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@DoninGA wrote:

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@delphisuzanne wrote:

IRS provided instructions on how to handle this adjustment. See New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service (irs.gov).

Why can't it be possible to do the entries manually on that schedule 1 according to instructions? 

Also how hard is it to deduct $10,200 from your unemployment benefits as long your are eligible ?

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The software will be updated on 03/19 for the unemployment compensation exclusion. 

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@DoninGA - Where did you see that Don?    I cannot locate it.

[DoninGA]

@macuser_22 A posted response from a user who copied the email received from TurboTax.

The desktop update today includes the exclusion amount on Schedule 1 Line 8 with the notation UCE

[Laffusrcu]

I just updated it and don’t see it yet 

[cloudywithachance]

It’s tomorrow not today. 

[macuser_22]

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@DoninGA wrote:

@macuser_22 A posted response from a user who copied the email received from TurboTax.

The desktop update today includes the exclusion amount on Schedule 1 Line 8 with the notation UCE

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I have not seen anything on the IRS site that the IRS has addressed or given guidance  how to calculate SS benefits, IRA contributions, EIC and many others that use income and AGI to determine what is allowed - is it before or after the exclusion?   Simply putting it on Sch 1 line 8 will affect all of those calculations.

[mmaher]

Any timeframe on when such a worksheet will be available in TurboTax?

Thank you.

Michael, TTLive, Tax Expert

[helen_feddema]

I filed in February, paying taxes on the unemployment.  So I will have to file an amended return with the new Unemployment Compensation Exclusion Worksheet form.  When will that form be available in TurboTax?  And how do I get back the tax I already paid?

[macuser_22]

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@helen_feddema wrote:

I filed in February, paying taxes on the unemployment.  So I will have to file an amended return with the new Unemployment Compensation Exclusion Worksheet form.  When will that form be available in TurboTax?  And how do I get back the tax I already paid?

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The IRS says NOT to amend until further guidance is provided.

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

[Gator_123]

From what I am reading it sounds as if you are married it does not matter if you filed Married filing Jointly or Married filing Separately the max is $150,000 or less to qualify for the exclusion.  Does someone know if filing Separately each party can utilize the $150,000 or does it get combined anyway?