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

[c_nixon]

CNBC reported that turbotax updated the software for $10,200 unemployment comp on Monday 03/22/2021 but it is not backing off the excluded amount even though I ran updates.  So has it been updated or not?

[EA12]

Online has been updated.  The desktop CD / DVD versions have not been updated yet..

[Anonymous]

I hate TT they have yet to update the desktop Mac version to reflect the 10200 exclusion for unemployment. I used override on their program to reflect the 10200 exclusion however the program will not allow me to efile. Bottom line those who paid for the Mac Desktop version are being held hostage. I bought this program from Costco and I will ask Costco for a refund. Boycott Intuit Boycott TT

[johnnyrogg]

Update your software for your paying customers already. It has been 2 1/2 days since CNBC reported the online free version was updated already. This is inexcusable and beyond aggravating.

[solaria_galaxia]

Still no word from a legitimate spokesperson from Turbotax on when we can expect to see an update?

Too late for me to return this and try something else however I surely can and will leave reviews of this very frustrating experience with sellers of their software to help others avoid this company that doesn't seem to address customers concerns.

[njbod]

how did you override the desktop version and then how did you file?

did anyone get credit for  this download - I bought it from Costco?

[geebjen]

I understand this is frustrating.  I'm waiting to file my taxes (to use the extended filing/payment date) and to file my brother-in-law's taxes (to use the unemployment exemption).

But it's clear most of you have never written or tested software.  It isn't easy to just slip something new in.  It has to be tested on PC & Mac; it has to be tested on complete returns, new returns, partially complete returns, returns where it was saved exactly on the unemployment 1099 page, etc, etc, etc.   

And that's the just software change.  Before that happens they need lawyers to read and interpret the law then pass the information to the software developers.  When the developers are done someone has to review the code and proof read any writing that the user sees.

Plus unemployment isn't the only change in the 3rd stimulus which affects 2020 taxes.

And lastly, if they got through all that and made a mistake you would be even more upset.

Cut these guys some slack, the update will come any day now.

[Candle]

This isn't a software change. It is the change in the way the tax code was written. It doesn't take coding to fix it, it takes a change in calculation. This is their primary job, to handle taxes. Stop making excuses for them. If I can do the math in my head in 5 minutes, they can make an update to the way it is calculated in their software in 2 weeks. 

FYI, there was another change put out by the IRS yesterday which now allows you to exclude UI income from your AGI in order to qualify for the tax exemption. I hope this doesn't take them another 2-3 weeks to figure it out. This is a big deal if your AGI is near the $150k limit but you are over it.

https://cnb.cx/3rollnH

[jay2021]

I understand what you are saying that it isn't just a matter of typing a word in to update the software.  Were I am frustrated is that if I do my taxes online through turbo tax and pay again to send them in (already bought the disc for my system) then I am able to file my taxes. Turbo Tax has reported to the media as well as a tax expert replied to my message that the online service has been updated not the desktop.  So all of the tax attorney consults and such must be finished as they were able to do it for online.  That I believe is the frustration here if online software is updated and working why not the desktops?

[Laffusrcu]

@geebjen 

I guess HRBlock can read the law test the new forms on software a lot quicker then TurboTax .

Well it’s just shameful and disrespecting to TurboTax users not letting us no ETA on update . Time is of the essence here ! 

[msaaj]

I totally agree with geebjen and personally have full confidence that the change will be here shortly.  As I said a while back, I am much more concerned about my state (NY) giving any guidance about what to do - In the past there have been cases where they did not conform to the federal rules and haven't said anything for a long time.  Also,  my daughter already filed.  When will she get her exclusion back and how will that work with NY taxes?  These issues are so much up in the air compared to Turbotax getting the fix out to desktop users a couple of days earlier or later. 

[Laffusrcu]

@msaaj 

Im positive that you have to amend your state tax with NY 

My state Missouri informed me that I have to amend my state taxes.  Nothing publicly but trough emails ! But they sure will let us know publicly trough Social Media 

[msaaj]

If I have to guess, given NY's history, I believe NY will not conform to the Federal exclusion.  Therefore, there will be no need to file an amended return because it won't change anything. Of course, that is a guess and I won't do anything until I know for sure. 

[KimCO]

I filed my 1040SR and owe money.  However, with the new unemployment exclusion, the amount will be reduced by almost half.  It appears the IRS will make adjustment to my IRS account, so it looks like I will not have to complete an amendment.  However, how does this affect my state tax amount owed.  Confusing at best!

[JamesG1]

@Anonymous

Unemployment income is reported by your state on IRS form 1099-G.  In TurboTax Online, enter as follows:

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Wages & Income.
• Under Your income, scroll down to Unemployment.
• Click on Start/Revisit to the right of W-2.

1040 Schedule 1 line 8 will generate a reversal when the unemployment update takes effect.  View this form under

Tax Tools / Tools / View Tax Summary / Preview my 1040.

This TurboTax Help allows you to sign up for updates from TurboTax about this feature of the tax code.  Nearly each state will respond to this mid-season change in the tax code.