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You are among millions who have now been affected by a mid-tax season change in the tax law. Patience will be necessary.
TurboTax will update the software for the unemployment but there is no timeline yet.
If you have not e-filed yet—-wait. And if you already e-filed and want to amend for this—WAIT.
i just tested overriding schedule one and adding the information as the irs specified and it worked and the wording matches what the irs specified. it does cause an error with smart check. so there is a workaround to manually add it to schedule one but you need to be careful, i will wait a little bit before doing this, but based on what the irs receives, it will match exactly what their instructions indicate
Be aware that over-riding the software voids your accuracy guarantee. It would be smarter to wait until the changes are incorporated into the software.
You cannot e-file with overrides.
TurboTax (TT) has not yet updated the software to do that.
But, the IRS has issued instructions, so TT does know what to do, So, far we haven't heard when. There do not appear to be any form changes needed.
Any workaround involves some risk of error That said, if you really can't wait, this work arounds appears to put it in the right place, with the right wording:
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income
- On the next screen, click yes
- On the next screen, you'll get blanks to enter the amount and a description. For the amount enter with a minus sign: -10200. For description type UCE(10200). It will go on line 8 of Schedule 1 as a deduction (-).
That assumes you meet the income limits, you’re entitled to the full $10,200, and your spouse doesn’t also have unemployment. See the worksheet at: https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...
I’ve heard that the American Rescue Plan Act specifically says that the excluded unemployment income is NOT to be subtracted in calculating the following:
If you're not sure that you're not affected by any of those, you should not use the workaround.
This past week, the House and Senate pass the Covid Relief Plan, then the president signned the bill into law. Since this has occurred, aproximately how long can all of us loyal Turbo Tax customer expect these amzing changes to clear the IRS, then those Turbo Tax changes be accepted by the IRS? I have finalized several tax returns and I am just waiting for the new legislation to be updated by the IRS and Turbo Tax. Any rough time estimate when these changes might be available in Turbo Tax so that I can submit these tax returns?
Thank you, Frank
You are among millions who have now been affected by a mid-tax season change in the tax law. Patience will be necessary.
TurboTax will update the software for the unemployment but there is no timeline yet.
If you have not e-filed yet—-wait. And if you already e-filed and want to amend for this—WAIT.
Thank you for your response.
Any news yet when this adjustment will be available in turbotax
Tell that to my 200 clients who are saying GET ME MY REFUND!!
@kaseylai What 200 clients? If you are a paid tax prepare you cannot use TurboTax. Why are you on the public user site for users of self-prepared tax software?
Intuit also makes a Pro Series that I pay handsomely for!
It's the step up from TT -
But this forum rocks for "real people" input 🙂
PS- I used TT in the early 90's and realized I loved prepping taxes.
Got my CPA in NY/NJ and never looked back.
I send clients to TT often if they are too easy - It's great software!
Even though the IRS has stated this will be a negative entry on Sch 1 line 8 the programming on the side of tax return prep programs and the IRS are not yet ready to handle this situation ... patience will be needed while they all get this updated. The IRS even says to NOT amend any returns yet ... they may make the corrections themselves so everyone take a deep breath.
Per the IRS .... Unemployment extension
The Plan also provides a $300 federal increase to weekly unemployment payments and extends two key pandemic unemployment benefits programs through September 6, 2021.
The first $10,200 of unemployment payments are now tax-free for households with an annual income under $150,000.
If you’ve already filed your 2020 return, hang tight. The IRS will provide guidance on how you can claim these additional benefits soon.
@Critter-3"The IRS even says to NOT amend any returns yet ... they may make the corrections themselves".
Interesting, what's your source for that statement that they make correct it themselves? Makes sense for them to avoid receiving millions of amended returns to process on top of their already huge backlog. But not sure that IRS doing that would maximize the savings for the taxpayer, would it? For example, if the filed return did not include a retirement tax credit because the taxpayer was above the income cutoff, but now would be because of $10,200 exemption, would the IRS process "making the corrections themselves" include adding the retirement credit to a return that previously didn't claim it?
And how would "fixing it themselves" pass through to filed state tax returns that are now due a refund?
Thanks!
This needs an timeline on when turbo tax will add it to their updates since the bill passed. It’s not in there yet as of 3/14/21.
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