Tax Year 2020: TurboTax Updates on Unemployment Tax Relief

[hntrust]

It depends what state you are in.  My state was updated on April 2 to reflect the unemployment benefits exemption. Unfortunately NC decided to not follow the federal forms and is taxing entire unemployment received.  Other states have not decided yet. Just sign in to TurboTax everyday to see if the state you live in has been updated.

[Irene2805]

What state(s) are you referring to?

@Jones0802

[Jones0802]

Maryland. Not ready yet. Tried to file federal and skip state but the website doesn’t actually allow you to skip state. So now I’m stuck with not filing either. Oh and already got charged! 

[Irene2805]

Please see the following TurboTax Help article:  How is my state taxing unemployment income?

It contains the latest information on how unemployment will be taxed in your state and whether our calculations currently support the way unemployment income is treated.

[weilu2018]

I used online software on 4/3/21, it seems still not correct, even more high number than other online provider.

[Irene2805]

The federal return in TurboTax has been updated with the changes in unemployment benefits.  

Please see the following TurboTax Help article:  How is my state taxing unemployment income?

It contains the latest information on how unemployment will be taxed in your state and whether our calculations currently support the way unemployment income is treated.

[Jones0802]

I’m aware federal is ready. Cannot file that without filing state. Website does not allow it like it says.

[DoninGA]

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@Jones0802 wrote:

I’m aware federal is ready. Cannot file that without filing state. Website does not allow it like it says.

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In the File section of the program on Step 3 you can change how the state tax return is filed.

[Irene2805]

TurboTax calculations have not been updated for Maryland. If you haven’t filed your return, you can either:

• Wait for TurboTax to be updated with your state changes, or
• File your return now and potentially amend later if they do not follow the federal guidelines.

You can e-file your federal return now and then e-file your MD return once the federal return has been accepted.

@Jones0802

[Buddog-1]

My thinking is that Maryland utilizes Federal AGI as the starting point.  I am assuming that there will be no need to amend.  

[mnosty]

I am still having an issue with the federal unemployment update. it is not updating when signed on, or if i go back thru the income section. Anyway to manually update ?

[AbbyC]

Turbo Tax not updated yet wi the Unemployment tax relief.  When will that happen?  

09AP21

Thanks

[garyschmid]

It has been update for a couple of weeks now. I ended up removing the software and reloading it and then it worked just fine.

[VolvoGirl]

The Desktop program was updated on March 26.  Try updating your program.  How to update

https://ttlc.intuit.com/community/installing/help/how-do-i-update-turbotax-cd-download/00/26038

If updating doesn't help then delete the 1099G and re enter it.

[dennis-donovan]

I am still waiting for the online version of Turbotax to be updated to reflect the American Rescue Plan. It has not been as of 4-10-2021.