When will the $10,200 of unemployment tax exemption go into effect?

[kaseylai]

They will not be able to "FIX IT" themselves, unless they are going to recompute all these millions of returns.

[thitch816551]

The decision has already been made into law . It's not under debate .  There is direction to wait until after the 25th of March so the IRS can send out the updates to the preparers

[DoninGA]

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@thitch816551 wrote:

The decision has already been made into law . It's not under debate .  There is direction to wait until after the 25th of March so the IRS can send out the updates to the preparers

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IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[haseeb0980]

The Law has Passed and it is in effect, when will Turbo Tax make the updates on their software to reflect the Unemployment Waiver of $10,200 when adding the 1099-G into their filing? 

[fanfare]

IRS has issues guidance for how to do it with existing software that doesn't do the adjustment for you.

visit www.irs.gov 

You will still be able to e-File.

[Critter-3]

You can make the adjustment in the program using the IRS information however we don't know if the IRS is able to process this Sch 1 line 8  situation yet ... filing before they are ready could slow things down for a long time.  I would err on the side of caution.  

[DoninGA]

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@haseeb0980 wrote:

The Law has Passed and it is in effect, when will Turbo Tax make the updates on their software to reflect the Unemployment Waiver of $10,200 when adding the 1099-G into their filing? 

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See this TurboTax support FAQ for information for the unemployment compensation exclusion - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

Also see this IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[irunlikeataxgurl]

@haseeb0980 

Did you read the post that is literally right above your post? The answer is there. TurboTax has to wait on the IRS to issue guidance just like EVERYONE else.  

https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

March 12, 2021

The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov. The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.

The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.

[irunlikeataxgurl]

@fanfare 

Where is this "guidance" you speak of? The website says to wait:  https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[BPTAX1]

The website also says this... New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service (irs.gov)

so do we wait or do we add it into line 8?  love how the IRS says to wait but releases how to do it on the same day.

[xmasbaby0]

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

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.

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...

Please read this very recent news from the IRS:

https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[fanfare]

" For those who haven't filed yet, the IRS will provide a worksheet for paper filers" 

IRS has issued that worksheet/instruction and you will be able to e-File if you use their guidelines.

I saw it and followed it and it works.

I looked but I can't find that page right now.

Update: you should be able to e-File.

I did not actually go through the FILE step yet

[BPTAX1]

@fanfare 

I believe this is it.

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[fanfare]

Yes.

Additional disclaimer.

I didn't use TurboTax to follow those instructions.

I used different tax software provider.

[ADomenico16]

It's been signed into law. When will turbotax update this? I paid taxes on all of my unemployment. This tax exemption will most likely make me pay less.