TurboTax update to 2021 American Rescue Plan

[denmal]

The note on the online version in my taxes says it will be updated by April 16th , Tomorrow - So I am going to wait until tomorrow to try again .

[nytovjo]

When we opened TurboTax yesterday it installed some updates and the APTC waver must have been one of them.  My daughter takes the Standard Deduction and her tax return went from her owing $480 in taxes to her getting a $714 refund.  The adjustment wiped out an almost $1300 of premium subsidy over payments.  We'll wait  few more days to make sure that nothing changes and then send the returns on their merry way. 👍

[craveking]

I see the APTC removed from medical expenses but I also noticed my MAGI changed. It is now roughly $5,000 over my AGI. I know what you’re supposed to add back in, or at least thought I did, but I’m not getting it. TT lists your MAGI on form 8962, Part I, 3.  But it doesn’t allow me to use that nice MagnifyGlass feature to look at the source of the number. But obviously it’s pulling it in from somewhere. Anyone know?

[craveking]

I figured it out. Adding back in taxable SS benefits. So MAGI increased by $4700 roughly. 

[craveking]

does anyone know if TT has completed all the updates to account for ARPA at this point? I see the UI exclusion is implemented and the APTC is now removing the premium payments from medical expenses. But I have not seen any official communication from TT telling us we're good to submit, error free, and all the ARPA changes have been addressed.

[CatinaT1]

This has been updated.

[craveking]

Thank you. Can you tell me why I can't find this information anywhere? You would think they would want people to know and they promised to let us all know, via email, when we signed up for updates. 

[boncough]

What is the latest news for those of us who submitted our returns early and were affected by the American 

Rescue Plan.  I appear to have a corrected tax return that has replaced my original (and it was corrected several weeks ago)....but every time I check "Where's my refund?" using the new return....I get a message saying I must have submitted the wrong info on the "Where's my refund" site.  I checked the info and I am using the figures on my corrected return.  Tax due date is less than a month away and I'm still wondering.... are they resubmitted the corrected forms or not?  What is going on with the lack of updates?

[VolvoGirl]

Did you have unemployment?  No the corrected return was not sent.  Still use the original refund amount to lookup.  

If you already filed and didn't get the 10,200 unemployment exclusion you do not need to amend.  The IRS will be adjusting it for you.  See,

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

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

[boncough]

Hello....

Yes, I originally filed my return in February before the American Rescue Plan was announced.  My original filing included the unemployment income I had received ($10,300).  Along comes the ARP and I now am allowed an  adjustment for $10,200 of that income.  No other pieces of the ARP affect my return.  In the meantime....Somebody, somewhere has replaced the original return with a corrected return on my TurboTax site.  Turbo Tax experts have said that couldn't have happened yet but IT DID....several weeks ago! Thank You for sending me the update article you attached to your reply.....as a result of that information....am I to believe that this will all be sorted out in May and we will not be penalized if its not done by the tax deadline?  The waters are still pretty muddied for me on this matter.

[VolvoGirl]

Yes Turbo Tax automatically updated all the early filed returns for the 10,200 unemployment exclusion.   So don't worry about that.  You do not need to amend.  Just wait for the IRS to send you the refund.  Did you have a refund or tax due on the original return?    

[boncough]

Thanks for your quick response!  On the original filing I was getting a small refund from the Feds but owed a small amount to the state.  On the corrected return, it shows me getting a much larger refund from the Feds and a refund from the state as well.

In the meantime....this recently came to light.....On my original filing I indicated that I had only gotten the first stimulus check....got a response from the Feds indicating that I had indeed gotten the 2nd stimulus check and it indicated where it was sent.  Upon investigation....I FOUND OUT THEY WERE RIGHT.....it was sent to an account (it's still open)  that was reported on my 2019 taxes and not the current account that I hold (where my first stimulus check was deposited).  Will they eventually fix that on my corrected form or will I have to send in an amended return? (as if this hasn't be complicated enough!)

[VolvoGirl]

No do not amend for the wrong stimulus entry.  That's going to delay your return a lot and might turn your small refund into a tax due.  But that's before the new unemployment exclusion is considered.  So just wait and see if the IRS sends you a refund or bill.  

How much is on your 1040 line 30?  That would probably be for the 2nd stimulus you said you didn't get.  So subtract that from your refund to see what your refund or tax due should be.  

[ohiodsb]

Have you (or anyone in this thread) received any update regarding the software recommending that we wait to file our returns so they can make changes/updates... and that they will update us via email?  My guess is we will know something by Friday April 30th, since it says end of April at the latest they will notify us.  But I wanted to see if you or anyone else heard anything yet.  I need to check my spam folders as well.  But I am still getting the prompt, so my guess is there is no update yet. 

[jzman]

Nothing yet.