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

[Laffusrcu]

No updated yet on TurboTax Premier yet ! 
Anyone? 

[FS]

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]

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]

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@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?

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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]

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.

IRS Statement on American Rescue Plan

@FS

[Jimksr]

Not in my Deluxe version

[JotikaT2]

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

[jgktt]

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]

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]

Yes, I guess. 

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

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

[JamesG1]

@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.

[EA12]

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]

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

[macuser_22]

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

[ErnieS0]

Do not file an amended tax return if you are already filed a tax return that includes unemployment benefits.

The IRS says: For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.

The $10,200 exemption for unemployment is available in TurboTax Online.

Desktop\CD filers can sign up for updates. Please sign up here.