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

[helen_feddema]

The bill is still in committee today (Saturday), though I wouldn't expect any action on the weekend.  I will check it again on Monday.  Perhaps TurboTax is anticipating the passage of this bill, but that seems reckless.

[AC71]

Updates fro Federal ad NYS this morning. Any way to find out what updates included?

[Todd711]

Maybe when an update is made Turbo Tax you should say everyone will be emailed. I think you have our emails on file vs checking back and this really mot being that clear.

[helen_feddema]

NYS Senate Bill S5125A still in committee today (April 5, 1:30 PM)

[helen_feddema]

NYS Senate Bill S5125A still in committee today (11:30 AM, April 7)

[WillMcC13]

Hi, 

I filed back in February before the new exclusion, and paid taxes on all of the unemployment I received. How can I refile so that I can get back what I paid in taxes on the first $10,200 I received?

Thank you

[DoninGA]

---

@WillMcC13 wrote:

Hi, 

I filed back in February before the new exclusion, and paid taxes on all of the unemployment I received. How can I refile so that I can get back what I paid in taxes on the first $10,200 I received?

Thank you

---

There is no need to amend the 2020 tax return that was filed.  The IRS will recalculate the taxes based on the exclusion and send the tax refund.

Go to this IRS website for information - https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[DaveF1006]

It depends. According to the IRS source, the IRS will automatically recalculate this for you and "there is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return." As of now, Turbo Tax will not allow an amended return until changes in the software have been updated according to this Turbo Tax link 

[Edited 04-07-2021|08:17 PM PST]

[KimCO]

When the IRS issues my refund, my AGI will be below the threshold for Earned Income Tax Credit (EITC).  Would I need to file a 1040-X to become eligible?  Also, how does the IRS’s actions affect my 2020 TT 1040-SR data since this saved for next year’s filing?

Thanks in advance.

[KimCO]

Good question...let’s hope your message is answered w/o the NY tax babble.

[MarilynG1]

@KimCO If the Unemployment Exclusion now makes you eligible for the Earned Income Credit, you should Amend your Return to claim it. 

However, don't submit your Amended Return until you receive your Refund from your originally filed return.

An Amended Return is processed separately and takes several weeks to complete. 

Click this link for more info on Amend to Claim EIC for Unemployment Exclusion. 

[helen_feddema]

Some progress on the NYS front -- NYS Senate Bill S5125A still in committee today, but Senate Bill S5125A has been assigned a "Same As" bill in the Assembly: A6584A

[msaaj]

My guess is that NYS will not do anything in time for this tax season.

[apple7351]

Hi, I need help from one of the experts. This whole $10,200 unemployment exclusion is over my head. I am using the desktop version of Home+Business (well, the "downloaded" version on my macbook) and I'm at the point where it asks for the unemployment received from my 1099-G.

I received 11,554 total. So do I put this number, or do I subtract the 10,200 excluded and put 1,354?? I'm so confused I have spent hours searching for answers.

 On the "Unemployment compensation exclusion Worksheet" from the IRS website, it talks about "put x on line 1, schedule 1, add/subtract lines 2-4", etc etc..... but where are these "lines" and "schedules" they are talking about??? I see no lines to input all this stuff on TT! Somebody please help!

[DoninGA]

@apple7351 

You enter the total amount of unemployment compensation received as shown on the Form 1099-G you received from your state.  The TurboTax program will calculate the exclusion.

The exclusion is reported on Schedule 1 Line 8 as a negative number.  The unemployment compensation received is on Line 7 of Schedule 1.  The result flows to Form 1040 Line 8.