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

[Critter-3]

They may have fixed the federal return ( look at sch 1 line 8 for the negative amount of unemployment allowed) HOWEVER  the state programs may not yet be updated ... each state (there are only 43 of them)  must correct their programming before TT can update theirs ... patience will be needed again this year.  Thanks Congress for enacting another tax law change mid tax season.  

[DirtyHarry]

Any idea when your gonna update the Home & Business version for this?

[txmet]

it has not been updated in all version. I have home and business app (disc) version and no update is showing yet, it still has the same stupid message they put up a few days ago.  the lack of communication from turbotax is infuriating

[Netbob]

What message is it displaying? No update either on deluxe but supposedly I see that the online free version has been updated. Any status tt?

[GeorgeHarrisonTaxMan]

I just checked at 10:15 AM Eastern Time on 3/20/21 and still no unemployment tax update on my Turbo Tax Premier which I just bought for $74.24.  :( 

[DoninGA]

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@GeorgeHarrisonTaxMan wrote:

I just checked at 10:15 AM Eastern Time on 3/20/21 and still no unemployment tax update on my Turbo Tax Premier which I just bought for $74.24.  :( 

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The update for the UC exclusion was made available for the TurboTax online editions.  It is not currently available for the TurboTax desktop CD/Download editions.

[txmet]

so basically turbotax is saying if you get the free online version we prioritize you over those that paid for the cd/disc and do not communicate with you .  Hmm interesting.  I guess its time to move on and try H&R next year.  over 15 years i paid for this software.  this was my last purchase

[TaxUser8]

New User here. I was trying to find information to confirm, is the final AGI total going to be reduced by the $10,200 Unemployment reduction? Is there a difference between the AGI and 'taxable income'?

[Critter-3]

 is the final AGI total going to be reduced by the $10,200 Unemployment reduction?  Yes, see the Sch 1 line 8. 

Is there a difference between the AGI and 'taxable income'?  Yes there is ... the taxable income is the AGI minus the standard or itemized deductions.   Look  at the form 1040 to see how it flows. 

[DoninGA]

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@TaxUser8 wrote:

New User here. I was trying to find information to confirm, is the final AGI total going to be reduced by the $10,200 Unemployment reduction? Is there a difference between the AGI and 'taxable income'?

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The unemployment compensation exclusion is up to $10,200 and reduces your 2020 AGI.  If your UC was less than $10,200 then the exclusion is only the amount of the compensation you received.

The AGI and the Taxable Income will usually be different.  The AGI gets reduced by the Standard Deduction for your filing status or the Itemized Deductions will be used if greater than the Standard Deduction.

The AGI is on Form 1040 Line 11.  The Standard or Itemized Deduction on Line 12.  Taxable income is on Line 15.

You can view your 2020 Form 1040 at any time. Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

[TaxUser8]

@Critter-3 @DoninGA Thank you both for the information! @DoninGA I appreciate the instructions on the preview tool. I didn't know that, thanks

[Birddog91]

I went on line and my amended was done. (Can file 3/25) Not sure if the state was done yet, I file both MA and CT, CT was adjusted, but MA where my wife's unemployment was from did not change.  I also wonder about my adjustment for the the exchange (CT insurance) where I was charged 2700 fine as I under estimated our salary for medical insurance, I should not be fined or get some sort of credit.  I also thought there was something in the stimulus that gave us a credit for the insurance exchange ie obama care.

[fbmcardl2]

@Birddog91  What do you mean "my amended was done?" Are you saying you actually went in and amended your e-filed return on TT or that TT did an amendment for you? And if you did it, why aren't you waiting for IRS to fix it first? Thanks, in the same boat.

[JWT4700]

So is there any timeline on when the state level adjustments will be made? PA doesn’t tax the UC, so would there be any change? Or would it lower your taxable amount which then lowers your tax bill?

[Griez123]

the response of the Turbo Tax Neanderthals is scary.  God what MORONS!