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

[DoninGA]

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@amt2020 wrote:

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@SweetieJean wrote:

Be sure to read the fine print:

However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits, but now are eligible because the [unemployment comp] exclusion changed their income.

https://www.irs.gov/pub/irs-prior/f8962--2019.pdfhttps://www.irs.gov/newsroom/irs-to-recalculate-tax...

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That link to the IRS doesn't work

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Go to this IRS website for this information - https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[SweetieJean]

@fbmcardl2   I am a user volunteer, not a TT employee.  But I would wait a bit.   Amended returns (even if efiled) still take at least 4 months to process, and I'm hoping there will be more IRS and/or TT guidance long before then.  Even without the "EIC" issue, many states are sill grappling with their own versions of the unemployment comp deduction, so there will be other changes coming as well.  I don't think Congress had a clue as to all the work they put onto the IRS (and state tax agencies) when they passed all these laws.

[SweetieJean]

Try this one:

IRS to recalculate taxes on unemployment benefits; refunds to start in May | Internal Revenue Servic...

[fbmcardl2]

@SweetieJeanThanks for your thoughts but TT needs to come out and tell us something about amending returns where an amendment is still needed. The IRS release you kindly provided does not say to wait to file an amended return, as the original statements did. TT needs to tell us how to proceed now that IRS has issued this latest statement.

[maestrowork]

The IRS just announced that they would start issuing refunds related to the UE exclusion in May without needing amended returns. 

so i would suggest everyone wait until then.  if you file an amended return now it’s just going to complicate things.  

[maestrowork]

I wouldn’t depend on TT to disseminate information - they are still working on getting details from IRS.   always go to the source.  it’s easy to check with irs.gov.   the information is right there if you do a bit Googling.  

[SweetieJean]

@fbmcardl2   Well, that IRS announcement just came out yesterday (March 31).    Any programming changes that TT makes must be tested, and then approved by the IRS before TT can release them.  And, as I said, amended returns take  a long time time to process, and no one wants to do a second amended return anyway. But TT is aware of all this.

[fbmcardl2]

@SweetieJean" Any programming changes that TT makes must be tested, and then approved by the IRS before TT can release them."

Not in this case. All the TT programming changes have already been made for folks filing returns so the approved software is there to amend a return without needing any IRS approval and testing.

[fbmcardl2]

@maestrowork" it’s easy to check with irs.gov. the information is right there if you do a bit Googling. "

Been there, done that, it's not there. So you can google yourself all you want. IRS talks to TT long before they talk to us because they depend on the software vendors.

[maestrowork]

Here.  Took me literally 2 seconds:  https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

I find it interesting that you DEPEND on a software vendor that must following IRS rules and instructions, and yet you expect them to tell you something the IRS hasn't already announced or posted. Always go to the source if you need any real information. Vendors are just that, vendors.

[fbmcardl2]

@maestrowork  And I find it interesting that you can't read what the IRS says. The IRS says that if you qualify for credits not on the original return, then you have to file an amended return. Period. The question for TT is an execution question on how to do that in TT software because a) we already paid TT and b) filing an amended return is included as part of the TT service.

[irunlikeataxgurl]

@fbmcardl2 False. TT software is tested and approved.

[fbmcardl2]

@irunlikeataxgurl  I know that. It was SweetieJean who said otherwise.

[irunlikeataxgurl]

@fbmcardl2 False. @SweetieJean said "Any programming changes that TT makes must be tested, and then approved by the IRS before TT can release them."

[blaing]

Situation: I filed my 2020 taxes before the American Tax Act. I owed taxes and set up to pay the taxes on April 15th via the TurboTax download version. I included over $10,200 in unemployment income. 

Based on what I read, the IRS will recalculate my 2020 Taxes and issue a refund sometime in May. 

My questions: Will my April 15th payment set up in TurboTax still be made?  Can I access somewhere to change the date? 

Thank you for any help, 

Bill