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The income limit is not $75K for individuals, it's $150K is for all filing status including individuals. (single)
It is technically in effect now. However, TurboTax is not yet fully updated to reflect the most recent legislative changes to unemployment. Here are the 2 most recent updates for unemployment - one for those who have already filed and one for those that have not filed yet. They both pretty much say to wait and to sign up to be notified by email.
For those that have filed, we are waiting on the IRS to confirm whether or not they will adjust those returns - they have waffled on this claim, but currently, the guidance is to wait. - https://intuit.me/3lPrWpH
For those that haven't filed, some parts of TurboTax are updated, some are not. Plus, the IRS just made another change (regarding the AGI cut-off), so the program will update again for that. So, if you have not filed, the guidance from TurboTax is to wait while we get things finalized - which can't happen until they stop making changes. But you can sign up to get the email when we are confident it is ready to use. Thankfully, they have extended filing season a month, so that should help. https://intuit.me/3fdfMG2 @kbl1320
My software from the disk has still not been updated. What is taking so long?
Be sure to do the current updates to the
software.
TurboTax has announced that it has updated their online software to account for a new tax break on unemployment benefits received in 2020.
The IRS strongly urges taxpayers not to 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.
TurboTax is developing the software required to process all of the new conditions.
These are pretty old answers (3 weeks). Your AI is not I.
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3/25...still no update on the form for unemployment exemption as far as I can tell. Anyone had any luck with the downloaded version?
If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here. See this for more information: How do I claim the new unemployment benefits in TurboTax?
6am on the East coast ...
I just updated the desktop software (Deluxe) and the Unemployment exemption seems to now be in place for this version. Opening the return changed the amount refunded by more than double. It inserted the Schedule 1 with a ($7270) exemption clearly documented.
I'll be checking through it a little bit more before claiming success but it appears the Unemployment exemption is in place for this desktop edition.
I signed up for email notification when the software updates will be available. Nothing has been sent. But now I read news reports that TT says the updates have been made. What gives??
I opened my Desktop version about 10 minutes ago and it did an update download and installation. My assumption here is that it's the long awaited one, based on another recent comment here.
That’s good to know. I guess my beef is that TT was taking a lot of heat to get the update out faster. Their response was sign up for an email notification and we will let you know as soon as it’s ready. Did that. No email that it’s ready. Read about it in Wall Street Journal. TT seems to have flubbed this all around with poor response and communication. Do what you say you are going to do.
Watch your email today to see if they do send an alert ... make sure to check your spam folder since they send these things out in large batches which often gets labeled as spam by your email's filter.
RE: To folks that have already filed using TT on-line and are affected by the unemployment tax changes.
I mentioned previously how you can see that TT has already changed our returns and calculated the new refund amount (or reduced $$ owed).
So if you take the added step and go to tools and view/print your return, you will find the new updated return for your records. The first page summary is wrong in that they didn't reconcile the refund received to what is owed, but the actual return looks perfect.
I tried to find anywhere TT or any expert has mentioned this but I couldn't find it. Forgive me if this is repetitive information.
This information further reinforces that the IRS will also be able to make these changes and we will not need to send in amended returns. Refunds will magically show up in our bank accounts. (I'll bet it takes less than 30 days).
@Craig-o Some may still have to file an amended return even after IRS does the recalculated refund because tax credits for which one was originally ineligible because of AGI being above the limit may now qualify as eligible after AGI from unemployment has been reduced. And I doubt that IRS will add, for example, a retirement savers credit which wasn't originally claimed but for which one is now eligible post the unemployment exclusion. So in that scenario, an amended return would be required. And then there's the whole issue of the state return that may require amendment.
When the IRS makes the correction on an already filed and accepted return then the extra refund will either be added to the refund you have not yet gotten or sent separately. Expect a letter from the IRS explaining the difference.
If you had a balance due on the original return :
And you have NOT paid it yet then you only need to pay the adjusted balance due by 5/17/21.
But if you HAVE paid the original balance due then the IRS will send you the difference in the bottom line back.
Either way do NOT NOT NOT mail in an amended return ... the IRS will correct this issue automatically.
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