Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment.
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@JeffreyR77 the entire country knows that the IRS has provided the details for the fix. It’s only TT that has the problem. At least try and be honest!
your competitors are up and running with their updates!
This is from the IRS Website today (3/23/2021): "If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you."
I filed my taxes (Federal and NYS) in February, so I should be getting a refund for the Federal taxes I paid on unemployment benefits. What about state taxes? I don't see anything on the NYS site.
What has me a bit upset is that others heard this that I do taxes for, and I use TT.
So quite a lot of them are asking why don't have have their taxes done and I'm saying TT doesn't' have the update. They then think I'm lying to them because they read articles that TT released, saying that they released the update last week on Thursday. Agh.. TT is not work this aggravation.
I very much don't think it'll ever happen again, to get a UC tax exception.
I think we have to amend our state taxes
that’s at least what Missouri Department of Revenue told me in email :
Missouri does not have any provision requiring an addition modification for this amount. If the federal legislation excludes this amount from federal adjusted gross income, then the federal adjusted gross income can be reduced on the Missouri return as well.
You will be required to file an amended Missouri return for any additional the refund to be issued.
Missouri Department of Revenue
Customer Service Manager
You guys, I called the Turbo Tax people from a number I got by googling it. They asked permission to come into my computer and see what was up, (since the worksheet has been completed for Turbo Tax) Apparently it automatically applies the $10,200.00 UI exclusion to your 1040 accounting, and they will come into your computer and show you where.
ITs a done deal now guys.
I hope I was not screwed out of my 10,200 exclusion because it did not automatically look like I was given that, but from the explanations given by the Turbo Tax help line (over the phone) they did come into my computer and point out where it was listed as having been taken out...trouble is...lookimg back it seemed like rather than take the 10,200.00 out it rather increased my income by 10,200.00 then turned around and took it back out...accounting has always escaped me...someone please look into this?
It's March 23rd, and still no Turbo Tax updates on the Unemployment Compensation exclusion??
I believe other tax programs have been updated already. Is Turbo Tax waiting to see what NYS does relating to this issue?? HELP!!
March 25th ***UPDATE**** This was brought to my attention!
While this will exclude the unemployment from the AGI, the Rescue Act specified 8 other tax and credit calculations that depend on the AGI were NOT to be affected by the Act.
In other words, simply entering this way can make 8 other calculations inaccurate. That is why it must be done in the software so those other calculations will use the AGI without regard to the change of the Unemployment Compensation Exclusion.
(The IRS worksheet was for paper returns and entering the change in a piece of paper will not change other calculations, but entering as misc income will change anything that depends on the AGI.)
The following 8 areas are NOT to exclude the Unemployment Income from the AGI and therefore, the below direct input instructions into the TT software is NOT advised:
Interest Education Loans
Passive Activity Losses & credit limits
Certain State Returns
Unemployment benefits received are reported on line 7 of Schedule 1 and when Turbo Tax provides the update, the Unemployment exclusion is reported as a negative on line 8 of Schedule 1.....provided you meet the requirements for the exclusion.
The worksheet has not been updated to the desktop versions of Turbo Tax but is available to those using Turbo Tax Online. This is so frustrating and VERY VERY VERY POOR CUSTOMER SERVICE....I pay good money for the Home and Business version of Turbo Tax but they do not have an update for paid license users after the IRS provided guidance EIGHT DAYS AGO?
Most of the states already have their guidelines in place as to their handling of unemployment benefits on the state return and probably will not need to make changes to that at this time.
They either include it or subtract it from federal agi, depending on how their state return is completed and what it starts out with
As stated above the amount of unemployment received is to be reported on the federal unemployment line and the states will work with how that flows through to the state returns.
You will need to check your own state's guidelines to see how it is handled on your own state return.
We all know that - the point that people are trying to make is: Turbo Tax is not updated their Software where as, H & R Block already did. People are unemployed - Why is turbo tax not updating the software yet?