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

[Craig-o]

@irunlikeataxgurl

Looking forward to it, hopefully sooner rather than later.  Thank you for the response.  Keep running, you tax gurl!

[GeorgeHarrisonTaxMan]

It is March 19, 2021 (Friday) at 8:19 AM (Eastern Time).   Is the update now in Turbo Tax to reflect the tax exemption for the first $10,200 of unemployment? ....or should I keep waiting for the update?

[Birddog91]

So will TT also amend the other parts of the return that will change due to the credit? IE I was on a health plan and paid the full 2700 penalty due to our income level.  This credit should reduce same, or remove all together based on language in the stimulus act.  

[txmet]

so was turbotaxws so called update, the message that now comes up saying its being = worked the smark check is run right before filing.?  if so, pitiful.  h&r already updated their software.  i switched from h&r to turbotax years ago when h&r bought taxcut software and changed it making it a lot worse,  but i may now take a new look to see if they cleaned up their act and may start using them again, as  it seems turbotax is more interested in advertising than creating a good product since they cant even communicate with their customers  clearly

[chapinreyes]

It looks like this was enacted March 11, 2021 - about a week ago.  Do we know when the update will be available for Turbo Tax?

[Ou155]

Has the 10200 unemployment exemption gown effect yet?

[ericyister]

I called Turbotax & talked to a rep. Supposedly, turbotax is working to update the software so I guess we need to wait. 

[Netbob]

I read several news reports from turbo tax that the update would be in place Thursday night. H and r block is supposedly all updated. I paid extra taxes when the ui money was certified so all told, I paid $612 in fed deductions and I owe $624 to fed.  California doesn’t tax ui benefits. 

[Irene2805]

If you haven't filed your tax return yet, we expect TurboTax to be updated later today (Friday, 3/19) to include the new federal tax relief calculations on unemployment benefits. [Releases are usually pushed later in the day.]

The adjustment to the taxable unemployment benefits will be on Schedule 1, line 8 of the 1040.

If you have already filed your return, the IRS has stressed to NOT amend at this time. We do not yet have updated guidance for those who have filed their returns.  Please see this TurboTax Help article:  How do I get the new unemployment benefits if I’ve already filed my taxes?  It contains the latest information and contains a link for you to sign up to be notified when changes occur.

@Ou155

@ericyister

@Netbob

[Netbob]

Awesome, I’ll keep on checking for the update. I had heard that about not filing until tt updated. Also because I owed the govt, I am in no hurry to file. 😉

[fbmcardl2]

@Irene2805Thanks. I know it's not time to amend and IRS says there won't be any need because they will recompute the return and send out the additional refund. But TT needs to start figuring out now how one will be able to amend the recomputed IRS return if one originally e-filed with TT. Here's  a concrete example: IRS recomputes the return and sends out another refund but doesn't add the Savers Credit to the return for which the same taxpayer is now eligible because of  the reduction in AGI from the unemployment provision. So how can one then go on TT and amend the IRS recomputed return (which will be different from what TT has in memory) and also at the same time amend the state return. That's the guidance we will be needing from TT.

[DawnC]

If you want to get an email notification when it has been finalized, you can sign up here, @Netbob.   It is the top priority at the moment.      

[Irene2805]

Thanks for your feedback.  We will work on guidance for those situations!

@fbmcardl2

The update should be available later today (Friday, March 19).

@txmet

[Kfrank55]

They said by TODAY .... its 6pm here how much longer ??? 

[macuser_22]

Check tomorrow.  TT is on Pacific time.  Updates are usually done at night.