Re: New Exclusion of up to $10,200 of Unemployment... - Page 18
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EA12
Level 3

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

I agree with the last post.  There was an update on the desktop CD / DVD version this week but it did not address the exclusion of the first $10,200 of unemployment received.

 

It is boggling to me that Intuit who with Quickbooks and Turbo Tax sells it self to small and medium business owners does not clarify what each update addresses.  As business owners, if WE treated our customers this way we would no longer be in business.  The losses from Covid are bad enough without this.

 

Communication is the key!!

When will the update to correct taxation for the $10,200 be released for your customers who purchased the desktop version of your product.

 

Most of your customers who received unemployment during covid are now missing their stimulus check because they have not filed their taxes due to your slow response,

 

 

Laffusrcu
Level 3

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

No updated yet on TurboTax Premier yet ! 
Anyone? 

FS
Returning Member

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

Can I just report net Unemployment Compensation in Turbo Tax after manually reducing the actual received by the $10,200 Credit so as to complete the return now? The forthcoming "worksheet" under development won't be a required form anyway will it?

txmet
Level 3

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

schedule 1 is filed with the return that where the reduction shows.  i was shown a way to show the adjustment manually by going to miscellaneous income(in step by step) and entering the negative adjustment there in the format the irs requires.  I am hesitant to do so if the software update is coming soon and since tt refusing to provide a date as to when they will update the software, i may try it.  i know they have a software install set for 3/26 but nothing has been indicated that this would be in that update.  they already made a BS update on 3/18 which had that stupid message saying to wait, so they can do an update off schedule

DoninGA
Level 15

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


@FS wrote:

Can I just report net Unemployment Compensation in Turbo Tax after manually reducing the actual received by the $10,200 Credit so as to complete the return now? The forthcoming "worksheet" under development won't be a required form anyway will it?


No, you cannot just enter the reduced unemployment compensation on your tax return.  The full amount of the unemployment compensation received is entered on Schedule 1 Line 7 and the exclusion amount is entered on Line 8 of the Schedule 1.  The amount from Schedule 1 Line 9 flows to the Form 1040 Line 8.

JotikaT2
Employee Tax Expert

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

Try doing it now.  The program has been updated to automatically apply the adjustment for unemployment as long as you have entered it in the appropriate section as outlined below. 

 

You will enter the unemployment information in the federal interview section.

  1. Select Income & Expenses
  2. Scroll down to All Income and select Unemployment
  3. Select Unemployment and paid family leave
  4. You will be able to enter your information from your Form 1099-G

 

The adjustment will be reflected on Schedule 1, Line 8G.

 

Unemployment adjustment

 

IRS Statement on American Rescue Plan

 

@FS

 

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Jimksr
Level 2

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

Not in my Deluxe version

 

JotikaT2
Employee Tax Expert

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

The desktop download version of the software is still being updated to reflect the updates.  Please see the link below for updates.

 

How does the 3rd stimulus affect you

 

@Jimksr

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jgktt
Returning Member

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

Caution. Entering manually in Sch 1 8G as a negative value, could also deduct from your state tax return. In CA, unemployment is not taxed, so doing this, decreased my state tax liability, which is wrong. I'm using TT Deluxe 2020.r22.043, Build date: Mar 18, 2021 at 5:59:16 PM

alexander
Level 2

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

You can't if you also are using TT for your State return and it reduces it again by another 10,200 (as in the case of the Virginia software). 

 

I suspect it's not just the Federal software TT needs to recode, it'll be all of the states' and territories' code too.  In all versions.  

 

I've decide to wait it out.  

NeuroPsyche
Level 3

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

Yes, I guess. 

As of today, Sunday March 21st, 2021, no updates 

They promised Thursday, then Friday.. .then Saturday  but still no updates 

JamesG1
Employee Tax Expert

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

@Laffusrcu

TurboTax does not yet support the $10,200 reduction of taxable unemployment insurance on your 2020 Federal 1040 tax return.

 

After the IRS provides guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment.

 

Then, each of the states will have to determine how or whether they will conform to the new changes and software  will have to be coded to reflect the decisions of the states. 

 

This TurboTax Help allows you to sign up for updates from TurboTax about this feature of the tax code.

 

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EA12
Level 3

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

If that is the case do you have an eta on the update?

Clearly your online version works with the states as does H&R Block’s software update.

Johnny Doe
Level 2

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

You are out of your mind telling people to file now and amend later.  Do your job and update the software

macuser_22
Level 15

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

Online is available now and desktop should be updated in a few days - probably in the schedule 3/26 update.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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