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@Rox001 wrote:
Not a good idea seeing as only the taxes paid are exempt
No, the taxes paid on the unemployment compensation are not excluded. It is the compensation received that can be excluded, up to $10,200. The taxes paid are entered as a tax payment on the Form 1040 Line 25b.
The unemployment compensation exclusion is on Schedule 1 Line 8 as a negative number.
Just a heads up... The instructions for filing only the Federal return and waiting for the state return until after the Federal has been accepted are not very user friendly. I mistakenly filed both and I'm sure that I will have to amend my state return afterwards.
Every state may be different when it comes to filling. This bill passed is only got federal taxes not state. So each state may be different. Like here is Pennsylvania they don’t tax unemployment.
I already filed my 2020 Turbo Tax taxes before the 2021 American Rescue Plan came in effect. I would like to amend my 2020 taxes. Where on Turbo Tax do i do this? I already did the updates for Turbo Tax and the amount coming back from Federal already changed without me inputting anything other than the update installed. Do I just do another efile or is there a spot on turbo tax to send over an amendment ? Need help ASAP. Thanks
Yeah I did the same as you. Filed already and received my state and federal refund already. Have over $10,200 in unemployment and I see my Fed refund when I updated today went from $1430 to about $3,200. I am waiting to see what guidance from the IRS to see if I should send in an amended tax return or if they will do it automatically.
I'm in same boat, do we Amend our state and federal Taxes?
If you filed already, the IRS is asking people to wait to amend their returns as they might send the refund for the unemployment automatically.
Thanks for the info, I will wait couple weeks to see what happens. I efile my fed and mail my MI. taxes in. I have got back both returns, but the new Rescue plan will get me more money from State and Federal. Not sure how MI. will do it?
My Husband didn't have any taxes taken out of his unemployment. I have yet to make the final step to file and our amount hasn't changed? Should I delete it and try again? I thought TT was up to date on their software.
Current guidance as of 24-Mar-2-21:
“If you have already filed your 2020 Form 1040 or 1040-SR, you should not file an amended return at this time. The IRS will issue additional guidance as soon as possible.”
https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation
Unemployment is only tax exempt the first $10,200. Not all states exempt it so be careful with the state side of it ( i thing 17 states are being cheap skates) I think if we wait til the fat lady sings (may 2021 maybe the states will jump on board this party train...by he way all at the expense of our grandchildren's futures
If you have not filed, please sign up to receive update about the TurboTax program, click here: Unemployment exclusion
For state updates, click here: State Unemployment exclusion
If you have already filed, you do not need to file or amend unless the calculations make you newly eligible for additional federal credits and deductions not already included on the original tax return.
For details, read here: IRS update on unemployment compensation
There is nowhere to sign up to receive updates about the TurboTax program at the "Unemployment exclusion" link you posted. Please stop posting this misinformation.
Is TT updated for the Advance Premium Tax Credit? I keep getting a message that you TT is waiting for the update.
This has not been updated yet. We are still waiting for guidance from the IRS on this provision.
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