Tax Year 2020: TurboTax Updates on Unemployment Tax Relief

[syoung123]

Hello, when will the TurboTax Premier updates be available for the $10,200 unemployment tax relief for both Federal and State (Michigan, South Carolina).  I just checked the software a hour ago, and it did not seem to have been updated.  Thank you.

Also, does anyone know whether Michigan has implemented the same unemployment tax relief as Federal?  Also, whether Michigan has decided to extend the filing deadline to May 17, 2021?  Same questions for South Carolina?  Thank you.

[Irene2805]

If you haven't filed your tax return yet, we expect TurboTax to be updated later today (Friday, 3/19) to include the new federal tax relief calculations on unemployment benefits. [Releases are usually pushed later in the day.]

The adjustment to the taxable unemployment benefits will be on Schedule 1, line 8 of the 1040.

If you have already filed your return, the IRS has stressed to NOT amend at this time. We do not yet have updated guidance for those who have filed their returns.  Please see this TurboTax Help article:  How do I get the new unemployment benefits if I’ve already filed my taxes?  It contains the latest information and contains a link for you to sign up to be notified when changes occur.

Michigan has not announced any unemployment tax relief so far.  Please check these links to the MI Department of Treasury websites for the latest information: 

• COVID-19 Updates for the Michigan Department of Treasury
• Frequently Asked COVID-19 Questions

South Carolina has not announced any unemployment tax relief so far.  They have announced that the Individual Income Tax due date has changed from April 15 to May 17, 2021.  Please check this link to the SC Department of Revenue website for the latest information:   SC Dept. of Revenue

[syoung123]

Thank you for the info

[Judy07]

It was not updated yesterday.  

[spdev25]

I got an email that says it was updated this morning.  I opened my return and looked for an update, there was none.  Then I went into the return and there was no update for the 10,200 for each person.  So maybe it didn't update Home and Business yet.

[ToddL99]

If you are using a desktop version of TurboTax, it may not have updated yet. Go to the "Check for Updates" option on the top menu or perform a manual update. See  What is a manual update?

We’re working hard to keep TurboTax up to date with the latest tax changes based on instructions we receive from the IRS. 

To get updates on our progress, go to one of the following links to sign-up:

For customers who have already filed: How do I get the new unemployment benefits if I’ve already filed my taxes? 

For customers who have not yet filed: How do I claim the new unemployment benefits in TurboTax? 

[EDCALLENDE]

This is still not updating for me.  I did the manual update on PC version of TurboTax.  I see here that it has not happened yet.

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

So has it been updated or not?

[JotikaT2]

The updates have been made for the federal returns using the online program.  The updates are being implemented for the desktop software. 

I recommend signing up for updates using the link in your post to be notified once the updates are complete.

Please see the following link as well for updated information as it is released.

How will the 3rd stimulus affect me

@EDCALLENDE

[peckele]

the desktop version has not been updated.  when will it be updated??

[LenaH]

An exact date cannot be given at this time. TurboTax is working hard to update the desktop software and should be completed shortly. 

If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here. 

@peckele

[pbrooking]

If I had already started my return in Turbo Tax premier but not yet filed, do I need to start over for the adjustments for unemployment in the 2021 Recue Act?

[jboy120]

Wait for the software update and it will automatically make the adjustments for you. Also, check your state tax updates to see if your state will allow the same deduction. Some states have to pass a law, like Ohio, to allow the deduction so it might take a couple more weeks.

[ToddL99]

The TurboTax online programs have been updated to reflect the $10,200 federal tax exemption for unemployment compensation. Updates to the desktop programs are still pending.

For customers who have not yet filed and want to get updates on the "update", see : How do I claim the new unemployment benefits in TurboTax? 

[sn0wm4n]

I live in Tennessee where we do not have state tax.  I am doing my taxes online with TurboTax.  I received unemployment in 2020 in the amount of $6,480.00 (so well under the $10,200 limit for no taxes to be taken out).  When I removed my 1099-G from TurboTax, my refund showed as $1,080.00, but when I added the 1099-G back in, the refund shows as $737.00 (so a deduction of $343).  Why the change if the unemployment benefits are not taxable?  I also know I do not change tax brackets with or without the unemployment so that shouldn't have any affect (and I am no where near the $150,000 limit).

[JamesG1]

TurboTax does not yet support the $10,200 reduction of taxable unemployment insurance on your 2020 Federal 1040 tax return.

Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment. 

This TurboTax Help allows you to sign up for updates from TurboTax about this feature of the tax code.