TurboTax update to 2021 American Rescue Plan

[DoninGA]

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@JTom wrote:

The filing deadline for tax returns has been extended from April 15 to July 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible.

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The date of June 15, 2021 for filing a federal tax return is only for Texas affected by the Ice Storm.

https://www.irs.gov/newsroom/irs-announces-tax-relief-for-texas-severe-winter-storm-victims

[PattiF]

The last post was for 2020. The filing deadline will probably be extended for this year also.

[SunnyOregon]

it would be great if TT would provide answers instead of the same links over and over that tell us nothing.  We realize this is an unusual circumstance but honestly, we've had it with the uncertainly over the last year.  If TT wants to retain customers, it's time to step up and give real answers and begin assisting us with real information.  It's not like this new tax bill came out of the blue yesterday.  

[Justsmyl]

Our software at the CPA firm updated yesterday. We use Drake. This change was known to be coming for quite some time. Let's hope intuit was working on this when they heard about the change. Do not change your amount that could cause a red flag. The $10,200 credit will appear on a schedule 1. It will adjust your adjusted gross income. Now we wait. 

[cmBarron]

https://www.cnbc.com/2021/03/17/turbotax-hr-block-need-time-for-tweaks-to-10200-unemployment-tax-bre...

According to this article, TT might have the changes implemented by Thursday (March 18) night.

[xmasbaby0]

@cmBarron Thank you for posting that.    If that is accurate we will ALL rejoice so that users can file!   

[dyoung9080a]

I NEED to be emailed when the New Update to the Software for the Unemployment Exclusion is READY   

My email address is   [email address removed]

THank you

[dyoung9080a]

If the Software change is not made before the April 15 deadline,  What are we supposted to do???????????

my email   [email address removed]

[xmasbaby0]

The filing deadline has been extended to May 15.

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

You are among millions who have now been affected by a mid-tax season change in the tax law.  Patience will be necessary.

TurboTax will update the software for the unemployment but there is no timeline yet.

  If you have not e-filed yet—-wait.   And if you already e-filed and want to amend for this—WAIT.

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-statement-american-rescue-plan-act-of-2021

[dollheaddemon]

Y'all TurboTax emailed me *this morning* saying the changes will be made to their filing software this Friday 3/19.

I'm sure everyone who was too impatient is all mad now lol.  

Here's the email BTW :

Dear TurboTax Customer,
 
We're working around-the-clock to make updates to TurboTax based on the recently-enacted American Rescue Plan so you can file with confidence and get your maximum refund.
 
You indicated a preference to wait for a product update related to Unemployment benefits. Because of this, we're informing you we expect TurboTax to be updated on Friday (3/19) to include the new federal tax relief calculations. Please login to your TurboTax account to continue when you are ready.
 
Thank you for being a TurboTax customer.
 
Sincerely,
The TurboTax Care Team

[skibum11]

Making an entry on line 8 of the Worksheet for Schedule 1 will reduce the taxable portion of unemployment benefits.  It does this by reducing the Adjusted Gross Income.  This might give an accurate picture of tax liability for many people.  However, for persons who purchase their health insurance through the Federal Government's Insurance Marketplace, this could be a problem.  It's my understanding that the amount of insurance premium credit/assistance is based on ALL household income.  This would include the non-taxable portion of unemployment benefits.  My concern is that reducing the Adjustable Gross Income would create an understatement of income, resulting in a false overpayment of premium and an incorrect refund of premiums.      

[glotac2019]

WHEN CAN I UPDATE TO RECEIVE THE AMERICA RESCUE PLAN?

[cmBarron]

Yikes! I hadn't heard that! If that is the case, then we will still owe a huge amount of money because the unemployment income puts us over the ACA cliff. We will have to repay every penny of our ACA discount if that is how it is going to work, so we are going to owe mid-5 digits of taxes! If the untaxable portion of unemployment doesn't count towards our income for ACA discount qualifications, then that pulls us back from that cliff and we will only have to repay about $2K of our ACA discount, and only mid-4 digits in total taxes.

[dyoung9080a]

I just started the software.  It downloaded and installed Delaware program updates 

need instructions to do my unemployment exclusion for the 10,200. savings. 

Help ????

[skibum11]

My post is only my "understanding" of ACA.  I'm by no stretch an expert.  Best thing to do is contact the Insurance Marketplace or your insurance advisor for guidance.  I'm going to.  As a test, I updated my income data in TT to adjust for the non-taxable portion of unemployment benefits, and the difference in liability/refund was huge.  I'm just not sure it's correct.