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

[Laffusrcu]

Brian from YouTube Channel ClearValueTax reports today that IRS might release update today :

https://youtu.be/WRvITVMTNWQ

[kategordon]

I thought I could go in to Turbo Tax and use the IRS instructions as well; however, not so. We are all waiting on the Turbo Tax worksheet update. Other wise you will have to paper file...and that may take months due to back log of other people doing this and also having amended their taxes...this has clogged up the system!

[Gator_123]

That's the way I read this as well.  Thank you for your reply..

[drwyatt1976]

I have read this thread and no employees are answering the question..

WHEN (a date) will the 

Unemployment Compensation Exclusion Worksheet – Schedule 1, Line 8

be implemented  in Turbotax Home and Business??

We want a release date so we can plan.  We dont need a working on it with the IRS statement.  The guidence is already here.  When will the softwarfe updates be published?

Tommorow, next week, the week after...  we need a real answer please

drw

[TestyTester]

I think I may have found a work around.  

1) I went into Forms

2) Selected Schedule 1

3) Double clicked on search for Line 8

4) Double clicked on line 22

5)  Entered " UCE" under "Other taxable income:"

5)  Entered -10,200 in column (a) Taxpayer

The adjusted amount of unemployment is the correct amount and follows the procedures that the IRS outlined, but I haven't filed yet since the IRS has extended the filing date until 5/17/21.   I am going to give TurboTax more time to update the software, but it does seem to me like this will work.  My only question is if the "Other taxable income" field is the correct field.

[Cluefool]

According to business insider Turbotax is supposed to be updated this evening...

TurboTax, H&R Block expect delays on stimulus unemployment tax break (businessinsider.com)

As of 8:15 est still no dice for me.

[dawnbush]

I just updated my Turbo Tax today but it did not appear to include an update for the Unemployment Compensation exclusion.  My numbers changed slightly, but I was not seeing the exclusion on the worksheets anywhere, is this correct?  I do not want to file until I am certain the update has take effect.

[macuser_22]

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.

Because of this and other factors, the IRS has extended the filing date from April 15 to May 17.

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.

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...

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

[Cluefool]

@macuser_22 

If you actually read the article instead of repeating yourself, Intuit communicated to BusinessInsider that it expected to have the changes in Today's March 18th update.

To Quote

"We're working around the clock to make updates to TurboTax based on the recently enacted American Rescue Plan so our customers can file with confidence and get their maximum refund," Ashley McMahon, a TurboTax spokeswoman, told Insider. "We are implementing IRS guidance on unemployment income within TurboTax, and updates will be available in product this evening, March 18."

[CrisDean]

"evening" could mean a lot of things depending on time zone.  Do we know what time this kicks in?  Does anyone have an update?  I signed up for the email updates and have had zero communication from TurboTax.

[cloudywithachance]

Must still be rolling out.  Checked my daughter's return online, no reduction in taxes owed, at the end it still says "You qualify for new tax benefits" and has the "Continue to file" or "I'll wait to file" buttons.  

[rbodeman]

11:36 pm EST on March 18th and no update to TurboTax for the unemployment waiver.  I already filed 2 weeks ago so I guess once this update does come out, I will amend. 

I think its best to just file without the waiver so that you can get your 2020 tax return in to the IRS to get your stimulus based on 2020 numbers.  And then file an amendment.

[macuser_22]

---

@rbodeman wrote:

11:36 pm EST on March 18th and no update to TurboTax for the unemployment waiver.  I already filed 2 weeks ago so I guess once this update does come out, I will amend. 

I think its best to just file without the waiver so that you can get your 2020 tax return in to the IRS to get your stimulus based on 2020 numbers.  And then file an amendment.

---

The IRS says "do NOT amend".   The IRS is looking to automatically apply the credit to taxpayers that have already filed without having to amend.

If you have not filed then they say to wait for software to be updated and they  extended the filing date form April 15 to May 17 to allow for that.

[Maharg]

@macuser_22

Do you have a source for that first part? All I've seen is the IRS saying "don't file an amended return YET"and I've assumed that's because the tax software companies haven't rolled out their revisions yet, so it would just further gum up the works with incorrect filings.

I'm not saying you're wrong, I'm just curious.

[claudia174]

IRS already gave the guideline on how to compute the waiver : $10200 in the worksheet. All Turbo Tax has to do is to update the software. Turbo Tax cannot tell those who bought the software to wait until further notice. Its filing season time. IRS already gave the guideline and GO SIGNAL. Its in IRS website- if manually file, on how to report the $10200 waiver no tax UI.