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

[KatValek]

As of Monday, March 22, 2021, the update still has not went live yet.  

Please see this link for more info. 

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

[gloriah5200]

The changes are in the process in the Desktop version of the software and expected to be released March 26.  They are already available in the  "online" version of TurboTax.

IRS has a message for taxpayers to be patient waiting on the changes from the American Rescue Plan to e implemented into the Internal Revenue Tax code and into the IRS system while IRS is busy processing 2019 and 2020 returns, sending out the 3rd Stimulus checks, etc.

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.

For additional information, please refer to the following link:

IRS Request for American Rescue Plan Patience

[Riles1951]

The latest post is 2 weeks old.  We think Congress did pass it Thursday, March 18th - allowing for $10,200 in unemployment benefits to be excluded.

[gloriah5200]

It was passed and IRS has been working to incorporate it into their systems and the internal revenue tax code, as well as determine and instruct tax software developers how to incorporate it into their systems.

However, IRS is very busy processing 2019 and 2020 returns, issuing the Third Stimulus checks, etc.

Here is a message from IRS:

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.

There are a lot of changes that have not yet been determined by IRS, please stay posted for information.

[dtzak]

Nice to see that Turbo Tax puts the free version ahead of the paid versions for updates.

Again, more reasons that Turbo Tax will be kicked to the curb for 2021 Taxes.

You clowns just can't understand how to do "customer service".

[lzupan]

Still no update.  H&R Block supposedly updated their software already.

[Irene2805]

We are working on incorporating the changes to TurboTax CD/Download as quickly as we can.  You can sign up here to receive an email notification when it has been completed. 

The update for the unemployment benefits has been added to TurboTax Online.  Just enter the unemployment benefits reported to you on Form 1099-G and TurboTax will automatically subtract $10,200.
 

@lzupan
 

[rcfran]

Yes, but what about the online State returns? When will they be updated?

[Birddog91]

I second the state, my online was amended for one state, but that state did not have any taxes taken out for Unemployment (CT) MA has not updated, state where my wife worked.  Fed did update, I also wonder as we are on obama care and paid a 2700 penalty will this be adjusted as we now have less gross income. 

[kaitybyrd]

I have the 2020 desktop version...will TurboTax give those customers free access to the online version and upload our data to it? I think that is the proper solution for those of us who have been left out of the dragged-out update process.

[macuser_22]

The desktop update will be March 25.  (Probably late afternoon pacific time).

[txmet]

Level 15 macuser_22 Level 15 6m ago
Reply to message
The desktop update will be March 25. (Probably late afternoon pacific time).

I know your intention is good, and there is a standard update set for that date, but have you received that info from any tt rep.  Every time i have had any interaction with an employee they have Not provided a date when they expect the update. They just say to wait and will be notified when its done.

[chapinreyes]

Ok so just to be clear, the update was incorporated to the TurboTax Online, but not yet to the TurboTax CD/Download versions, correct?  I Turbot tax told me my version is up to date so it does not seem the update has been made available to the CD/Download version of Turbo Tax Premier?

[kpinola]

@Irene2805 And what about folks who have already filed?

[Peggy L]

Today is Tuesday, 3/23/21 at 1:30 PM Eastern time.  I am using Turbotax Premier, my software says it is up to date, but the $10,200 unemployment tax exemption is not being applied to my tax return.  Has the update been release yet?  If not, when is it scheduled?  If yes, how do I get it to recalculate including the credit?  (I had my Federal Return completed through error check but not filed.)