Tax Year 2020: TurboTax Updates on Unemployment Tax Relief

[AmyC]

@Happygirl1 Your unemployment should be taking the deduction. Go back through the input screen. You may need to delete the form, log out and then back in. Then re-enter the form.

You may have stuck information. Here are more steps:

For stuck information follow these steps:

1. Delete the form, see How to Delete 
2. Log out of your return
   1. Try one or more of the following:
      • Don't use Internet Explorer.
      • Clear cache and cookies,
      • Sign in using a different browser.
      • Sign in using a different device.
3. Log back into your return.
   • Enter the form again.

Check your return to see the $10,200 has been subtracted from your income. See How do I preview my TurboTax Online return before filing?

[just1suzieq]

Using TT Deluxe online as usual. I entered all my information before the update. And mine doesn't appear to have given me the $10,200 relief. Do I need to clear everything & start over? I tried just removing the unemployment income & adding it back in. But that didn't seem to work.

[Cynthiad66]

No.  Do not clear everything and start over.  Just delete the form 1099G and re-enter.  It should automatically make the adjustment.

[Keith_S]

Any update on when West Virginia's state returns will be updated?  We are almost a week from the deadline.  I'm trying to amend my return because I filed early and don't see any way to add in the unemployment credit.

[ErnieS0]

@Keith-S. TurboTax is updated for West Virginia. There is no need to add an unemployment credit into WV. It's already part of the return.

WV starts with federal adjusted gross income (which already includes the unemployment subtraction).

If you filed a VW return before the American Rescue Plan became law:

1. Amend your West Virginia return. See I need to amend my state return.
2. Continue in the West Virginia section until you see Amend a 2020 West Virginia Return?
3. Say YES to "Do you want to amend a previously filed 2020 Wet Virginia return?"
4. Enter your original refund or amount paid. The difference in the WV refund box will be your refund from the unemployment subtraction.

[graceeorso]

I received my refund already but my refund amount still shows the same amount and I thought it was supposed to change for the unemployment benefit refund. I looked on my return and I can see the -1020 on line #8 but line #35 shows my original refund amount. 

[DawnC]

Sounds like you filed after TurboTax was updated.  When did you file?    @graceeorso

[graceeorso]

No I don’t think so? I filed February 15

[graceeorso]

No I filed on February 15 @DawnC 

[AmyC]

If you went in using amend, it will show your original information. The IRS is correcting unemployment and credits. If you qualify for more credits, you will need to amend.

@graceeorso

[graceeorso]

@AmyC  they said no one needs to amend hmmm. So not sure what to do. How do I see my origins return? I went in to look at it and I see my refund is still the same and I can see the -1020 on there but not sure if that’s updated recently or not 

[graceeorso]

@DawnC @Will it take longer to get unemployment refund if I amend? I went on Facebook and a lot of peoples has automatically changed. I just want to make sure before I go on and amend my state taxes 

[graceeorso]

@DawnC @AmyC so what amping do I enter for the amend? I’m not sure how to do this at all. 

[DawnC]

It may delay your payment, so I would not file the federal amendment - the IRS has already started sending out the additional refunds for the federal unemployment exclusion.   You can send your state amendment now, however.

If you have already filed your 2020 Form 1040 or 1040-SR, you should not file an amended return. The IRS will automatically refund money to people who already filed their tax return reporting unemployment compensation. See IR-21-71  for more details.    @graceeorso

[graceeorso]

@DawnC  So in one sentence you say don’t amend the state and the other you said I should ? So amend state? Or no?  ? I filed a 1099 for 2020 taxes. I don’t know what amount to enter for state amend and I’m not sure what section to put it in and what else to enter in