TurboTax update to 2021 American Rescue Plan

[Wally1600]

I think this is more recent and explains how this exclusion will be handled on the forms.

New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service (irs.gov)

[Skimoab]

How do we go to individual forms in turbotax? 

[Wally1600]

Just click on Forms in upper right hand corner next to Flags and Notifications. A list of forms and worksheets will appear on the left hand side. Click on the form you wish to view.

[xmasbaby0]

Only the CD/download has Forms mode.   Online TT does not have forms mode.

[linda sue]

How do you navigate to specific forms like that? Thanks.

[Noralla]

I would not do this, it has to be filed properly.  Also, you don't get $10,200, you get the taxes back that you paid on that amount - which should be about $1,200

[Yse822]

Can you share how you were able to access that form in order to adjust it yourself?  I can’t figure out how to get to it, and I searched through the help topics.  Thank you!

[staceysnope]

you can't access forms if you are using the online version of turbo tax.

[baluku2002]

Do you work for Turbotax? Your answers certainly suggest that you might. Before there was ever Turbotax, plenty of people did their own taxes with their own forms: it's simply a longer, more tedious process. At this point, without more information from Turbotax as to WHEN they will make the necessary changes, I will simply make the necessary adjustments and do all my taxes on paper forms correctly. And TT will lose me as a customer.

I am willing to be patient but TT needs to be forthcoming regarding when the necessary changes will be made. I am finding that its competitors: HR Block, Hewitt, etc. are providing more information on their websites.

[DoninGA]

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@baluku2002 wrote:

Do you work for Turbotax? Your answers certainly suggest that you might. Before there was ever Turbotax, plenty of people did their own taxes with their own forms: it's simply a longer, more tedious process. At this point, without more information from Turbotax as to WHEN they will make the necessary changes, I will simply make the necessary adjustments and do all my taxes on paper forms correctly. And TT will lose me as a customer.

I am willing to be patient but TT needs to be forthcoming regarding when the necessary changes will be made. I am finding that its competitors: HR Block, Hewitt, etc. are providing more information on their websites.

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See this TurboTax support FAQ for information for the unemployment compensation exclusion - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

Also see this IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[RIMom1]

Suggesting small change to your instructions: Go to Schedule 1 Line 8 and click on the amount field. A magnifying glass will appear. Double click on this and it will take you to the worksheet for Schedule 1 Line 8. When you get to the worksheet enter -10200 on Line 22 with a description of "UCE".  Scroll down to the box "Other Adjustments to Income Smart Worksheet."   On line H, enter "UCE "  and $10,200 as the amount. Then the $10,200 automatically appears on line 22. Click off the line and it should update correctly. Go back to Schedule one and you should see UCE under Line 8 with an amount of -10200. 

[RIMom1]

Maybe its best to wait a couple of weeks before filing your return.  Wait and see what the advice is then. 

I had originally posted a method to add the $10,200 unemployment credit to your 1040, using Schedule 1, line 22.  (directly amending Schedule 1, which you can do if you have the CD version of Turbotax which lets you work directly on the tax forms.)   But I don't know enough about what the IRS requirements will be. So I have changed my post. 

[dh2004]

perfecto!!!  Thank you  Now I can finish up our Adult Son's taxes. He has autism and was laid off from his part time job last march.  His unemployment is much more than his normal job pays by far.    Thanks for suggesting: Suggesting small change to your instructions: Go to Schedule 1 Line 8 and click on the amount field. A magnifying glass will appear. Double click on this and it will take you to the worksheet for Schedule 1 Line 8. When you get to the worksheet enter -10200 on Line 22 with a description of "UCE".  Scroll down to the box "Other Adjustments to Income Smart Worksheet."   On line H, enter "UCE "  and $10,200 as the amount. Then the $10,200 automatically appears on line 22. Click off the line and it should update correctly. Go back to Schedule one and you should see UCE under Line 8 with an amount of -10200. 

[MB317]

What do you do if you have already e-filed your Federal Taxes?  Do you amend them?  Will the IRS send an update?  Will Turbo Tax have an update to amend for this soon?

[Wally1600]

Based on the IRS Instructions here the exclusion should appear as a negative amount on Schedule 1 Line 8 with a description of UCE (see item 10 below). Based on the changes you made it doesn't display correctly on the Schedule 1 Form. Turbo Tax correctly calculates the tax, however, the IRS wants to see the exclusion on Line 8 of Schedule 1.

Unemployment Compensation Exclusion Worksheet – Schedule 1, Line 8

1. Enter the total of lines 1 through 7 of Form 1040 and Schedule 1, lines 1 through 7. Include the full amount of unemployment compensation you received in 2020 on Schedule 1, line 7.
2. Use the line 8 instructions to determine the amount to include on Schedule 1, line 8 and enter here. Do not reduce this amount by the amount of unemployment compensation you may be able to exclude.
3. Add lines 1 and 2.
4. Enter the total of line 10b of Form 1040 and Schedule 1, lines 10 through 21.
5. Subtract line 4 from line 3. This is your modified adjusted gross income.
6. Is the amount on line 5 $150,000 or more?
   • [ ]Yes. Stop You can’t exclude any of your employment compensation
   • [ ]No. Go to line 7
7. Enter the amount of unemployment compensation paid to you in 2020. Don’t enter more than $10,200
8. If married filing jointly, enter the amount of unemployment compensation paid to your spouse in 2020. Don’t enter more than $10,200
9. Add lines 7 and 8 and enter the amount here. This is the amount of unemployment compensation excluded from your income.
10. Subtract line 9 from line 2 and enter the amount on Schedule 1, line 8. If the result is less than zero, enter it in parentheses. On the dotted line next to Schedule 1, line 8, enter “UCE” and show the amount of unemployment compensation exclusion in parentheses on the dotted line. Complete the rest of Schedule 1 and Form 1040, 1040-SR, or 1040-NR.