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

ericyister · ‎March 15, 2021

Thank you, I agree!

I will wait for TurboTax software to be updated. Hoping to check back weekly until that happens of call Turbo Tax support directly if it doesn't happen by end of March 2021

nellie01 · ‎March 16, 2021

from the irs post changes to forms...If your modified adjusted income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021 excludes from income up to $10,200 of unemployment compensation paid to you in 2020. For married taxpayers, you and your spouse can each exclude up to $10,200 of unemployment compensation. For example, if you were paid $20,000 of unemployment compensation and your spouse was paid $5,000, report $25,000 on line 7 and report $15,200 on line 8 as a negative amount (in parentheses). The $15,200 excluded from income is $10,200 for you and all of the $5,000 paid to your spouse. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation.

nellie01 · ‎March 16, 2021

If your modified adjusted income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021 excludes from income up to $10,200 of unemployment compensation paid to you in 2020. For married taxpayers, you and your spouse can each exclude up to $10,200 of unemployment compensation. For example, if you were paid $20,000 of unemployment compensation and your spouse was paid $5,000, report $25,000 on line 7 and report $15,200 on line 8 as a negative amount (in parentheses). The $15,200 excluded from income is $10,200 for you and all of the $5,000 paid to your spouse. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation.

nellie01 · ‎March 16, 2021

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

nellie01 · ‎March 16, 2021

Here you go...

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

xmasbaby0 · ‎March 16, 2021

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

kbl1320 · ‎March 16, 2021

In TT Deluxe, I went to forms mode and it will not let me enter anything on 1040 schedule 1, will TT release an update prior to April 15th?

DoninGA · ‎March 16, 2021

@kbl1320 wrote:

In TT Deluxe, I went to forms mode and it will not let me enter anything on 1040 schedule 1, will TT release an update prior to April 15th?

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

xmasbaby0 · ‎March 16, 2021

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Rob Tu · ‎March 16, 2021

Now that the $10,200 tax law has passed, does Turbo Tax have plans to update the software to not tax unemployment. Would like to avoid paying taxes on something that is non taxable, but understand the "newness" of the change Thanks

xmasbaby0 · ‎March 16, 2021

@Rob Tu 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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

MJP255 · ‎March 16, 2021

I

Is Turbo Tax going to send out a software update so I can take advantage of this law BEFORE I file my 2020 taxes on April 15,2021???

"A new provision waives federal taxes on the first $10,200 of unemployment benefits you received in 2020. Married couples who file jointly and both collected unemployment insurance benefits in 2020 will have taxes waived on $10,200 per person, or up to $20,400 of UI benefits total.

The waiver applies to individuals and married couples who made less than $150,000 in adjusted gross income in 2020.

have not files my 2020 taxes-"

Critter-3 · ‎March 16, 2021

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

DoninGA · ‎March 16, 2021

@MJP255 wrote:

I

Is Turbo Tax going to send out a software update so I can take advantage of this law BEFORE I file my 2020 taxes on April 15,2021???

"A new provision waives federal taxes on the first $10,200 of unemployment benefits you received in 2020. Married couples who file jointly and both collected unemployment insurance benefits in 2020 will have taxes waived on $10,200 per person, or up to $20,400 of UI benefits total.

The waiver applies to individuals and married couples who made less than $150,000 in adjusted gross income in 2020.

have not files my 2020 taxes-"

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

fpmitchell · ‎March 16, 2021

The Statndard answer this question that you have posted was put together before the bill was passed. I need to know how turbo tax is going the handle my unemployment exemption for 2020

Thanks

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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