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

[vsimone1950]

OLD News!!

What's happening with NYS exclusion?????????

[helen_feddema]

NYS Senate Bill S5125A still in committee today.  Here is a link for checking it:

https://www.nysenate.gov/legislation/bills/2021/S5125

[vsimone1950]

I inquire regularly to the NYS S5125A Bill's sponsor (Simcha Felder) and don't get a response. 

I give up. I'm waiting until May 1st, and then filing all the NYS tax returns without the unemployment exclusion.

It's so unfair to string taxpayers/filers along like this. Makes you think the Bill has been a put on all along.

[Erilflynn]

I spoke to customer service twice recently in the NYS tax office for direction on completing my out of state return (by hand).  Both times I was told NYS is not doing the exclusion.  I will wait another couple of weeks before I give up.

[12Bubba44]

Has Turbotax software been updated to reflect the change of Unemployment exemption? How I subtract the 10200.00 from the previous total received?

[VolvoGirl]

Yes, Turbo Tax is updated for it.  You don't have to do anything special to get it.  It is automatic.  Just enter the full amount on your 1099G.  If the exclusion doesn't show up you may need to update the Desktop program. Go up to Online-Check for Updates,  for Mac close and open the program.  If updating doesn't fix it try doing a manual update for Windows

https://ttlc.intuit.com/community/updating/help/manually-update-turbotax-for-windows-software-basic-...

If updating doesn't help or you are using the Online version then delete the 1099G and re enter it.

Or do you have a high income?

If you have unemployment you can exclude up to 10,200 (per spouse) if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

[helen_feddema]

NYS Senate Bill S5125A still in committee today (May 3)

[roxibaby48]

Hello all - What is the requirement in receiving the 10,500 I file before March 11, 2020, and received 400 bucks from federal and state combine- I'm a single filer and my income was a part-time gig total of $8886.00 for the 2020 tax year   

I receive unemployment in July 2020  but had already filed my taxes and still getting benefits each week - my income will be over 17, 000 from unemployment benefits on 9/6/20201 can I  receive the 10, 200 next year tax season when I pay taxes, and if there is a certain amount of income to collect the 10,200 ?? Thank you for reading this message 

Best, 

RB

[VolvoGirl]

@roxibaby48  They will exclude 10,200 of your unemployment so it's not taxable.  You don't exactly get it back.  We don't know what the rules will be for 2021.  

You can exclude up to 10,200 of unemployment unless your income is over 150,000. The IRS will recalculate your return for the new unemployment exemption if you already filed.

You can log back into your return and it should automatically update your return and show you the new refund. But the updated return won't be sent. The IRS will adjust it for you.

If you have filed. The IRS will recalculate your return for the new unemployment exemption for you. 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.
https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[drivewithsal]

I reported my Unemployment for 2020 tax year for incorrect amount of $10,723 when I actually got $9,312 exactly and I did not record a job I forgot to add for UPS.

[xmasbaby0]

@drivewithsal If you entered an incorrect amount of income and left out income that you received in 2020 when you filed your 2020 return you need to wait for it to be fully processed and then send in an amended return to make the correction to the unemployment and to report the earnings from UPS.  Do not amend until your first return has been fully processed.

Select your tax year for amending instructions:

• 2020
• 2019
• 2018
• 2017

     What does it mean to "amend" a return?

·         Do I Need to Amend my Tax Return?

[Cmorin78]

Since I filed back in March and the IRS said not to file any amendments how does it work with turbo tax? Thanks 

[xmasbaby0]

TurboTax is not involved.   The IRS is taking care of recalculating refunds if you filed and paid tax on unemployment before the tax law changed.

The IRS began to send out the additional refund checks for tax withheld from unemployment in May.   If you are eligible for the extra refund for federal tax that was withheld from your unemployment the IRS will be sending you an additional refund sometime during the next several months.  TurboTax cannot track or predict when it will be sent.  The IRS has not provided a way for you to track it, so all you can do is wait for the refund to arrive.

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...

Please read this very recent news from the IRS:

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

https://ttlc.intuit.com/community/tax-credits-and-deductions/help/am-i-eligible-for-a-new-credit-or-...

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[vswindell]

I'm working on Taxes for a family member who FINALLY got her unemployment information (it's nearly July)

Turbo Tax did and update and yet when I enter her unemployment info  she has to pay taxes on it.  She made less tan 22K in 2020 and clearly qualifies.

What do I need to do so that she does have to pay takes on her unemployment?

[xmasbaby0]

@vswindell 

Only the first $10,200 of unemployment is exempt from federal tax.   If your relative had more than that then the rest of it is taxable income.    Look on Schedule 1 ---lines 7 and 8--- and you should see that $10,200 was not taxed.    (  IF you entered her unemployment in the right place in the software.....where did you enter it

Enter your 1099G in Federal>Wages & Income>Unemployment  )

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.