Tax Year 2020: TurboTax Updates on Unemployment Tax Relief

[wx_lei]

The unemployment exclusion is up to $10,200 only for one person (my wife) not for mine (5,544).

[DoninGA]

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@wx_lei wrote:

The unemployment exclusion is up to $10,200 only for one person (my wife) not for mine (5,544).

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Verify that you entered the unemployment compensation for each person by name, not all for one person.

Enter unemployment compensation in the Search box located in the upper right of the program screen. Click on Jump to unemployment compensation

[wx_lei]

yes, I entered each separately. the schedule 1 combined them in line 7. and line 8 shows only for 10,200.

[DoninGA]

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@wx_lei wrote:

yes, I entered each separately. the schedule 1 combined them in line 7. and line 8 shows only for 10,200.

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What is the total amount entered on Schedule 1 Line 7?

[wx_lei]

32,304 from both 26,760 for my wife and 5,544 for myself.

[DoninGA]

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@wx_lei wrote:

32,304 from both 26,760 for my wife and 5,544 for myself.

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I just completed a 2020 test tax return using the desktop editions and enter the unemployment compensation based on your numbers.

On Schedule 1 Line 7 shows 32,304 and on Line 8 shows -15,744

Go back and deleted the unemployment compensation for both of you and re-enter.

[wx_lei]

I found the issue. When I opened the form 1099-G, I found the box of Spouse were checked for both of my wife and myself. I switched to another checkbox "Joint" for me. The correct amount 15,744 shows on line 7 correctly.

This checkbox is determined by the software itself nowhere to choose when user entering. It should be choose a correct one by the person name but it doesn't work. As a programmer, I believe that is an issue with the programming trigger that is not working properly. 

Anyway, I am happy to fix it by myself. Hope it can help someone like me...

[fionakitten14]

I'm wondering if anyone would have any information regarding a possible update from the State of New York on its position vis a vis the UCE situation.  as of this date, it's only a Federal exclusion, and not a State one, although other states may be falling in line with Federal guidance.

I understand that New York State is "decoupled" from the Federal exclusion but this may change, potentially. NY IT-558 is used to reflect a change to Federal income, for example, Charitable Contributions if one files Standard Deduction and not Itemized.

This is somewhat unusual in that most states follow suit with Federal, particularly in the case of extension dates.

I'm assuming that if it does change, TT will update the software program for both online and desktop users as they have done so in recent weeks,

I'm telling clients to wait until the last possible moment before filing their NY state return,  It's possible, of course, that state will adjust at some point down the road, but I'm not holding my breath.  We all of us know what His Excellency Governor Cuomo is mired in these days, do we not ...

alec

alec

[wx_lei]

I tried your way. It works fine too. Actually, I tried before but only deleted one not another one. It didn't work.

Thank you. 

[wx_lei]

Agreed, we should wait more time to see if any update from NY. 

[bettyzhoumd]

I opened TurboTax today and it hasn't updated the unemployment tax relief. I did check for update.

[peckele]

it's updated!!! i just got the update and it fixed my return!!!

[fionakitten14]

TT should have updated the Federal UCE.   It did on my Home and Business desktop version, and it already did on most, if not everyone's online and desktop versions.

The  Federal tax on the first $10,200.00 of unemployment compensation is excluded.  For some states, there is no exclusion as of the present.

alec

[fionakitten14]

Look at your 1040 Form, schedule 1, Part 1, Line 8.  UCE figure would be a negative $10,200.00

There is your update.

alec

[n9iagalbert]

By its fixed what do you mean?

I have the computer based cd installed software.  I recently did update but no change in federal return.  I opened my tax file, deleted unenjoyment info, re added it did a full check, same.  

Has the update occurred? 

shouldn't I expect the next launch to auto update?

what do I need to do to see the reduction in tax Burdon and get a larger return?