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

[Alanj1970]

Disregard. Still confused though

[VolvoGirl]

@Alanj1970   When did you file?

Both Turbo Tax Online and Desktop programs have been updated for the exclusion and will give it to you automatically if you qualify. If you have unemployment you can exclude up to 10,200 (per spouse) if your income is under $150,000. Your unemployment compensation will be on Schedule 1 line 7. The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

If you have not filed just enter the 1099G.

If you have filed. The IRS will recalculate your return for the new unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[kaseylai]

I have noticed a bit of an error in the math on the adjustment on 6 clients already. I reworked to see what refunds they deserved, and it was off $22, $35, $28 etc  below what I thought it should be.

These peeps don't itemize, so I am not sure what the deal is.

[xmasbaby0]

"Clients?"   What do you mean by your clients?    Paid tax preparers are not allowed to use TurboTax---that is a violation of the terms of service.   if you have "clients" for whom you are preparing tax returns you should be using one of the professional software versions.

[MissionMan10]

I filed my taxes before the reliec act went into affect. I owe $2500. With the relief act, I will owe less. Do I make the $2500 payment and wait for reimbursement, or will the IRS adjust what I owe before I send a check out? 

[ThomasM125]

@ MissionMan10 If you haven't paid your tax due yet, you should send in the adjusted (lesser) amount.

[maestrowork]

Whatever you owe on the  return that you FILED should be paid by May 17.  

You can wait for the IRS to correct and refund, or if necessary you can file an appended return.  But you can’t defer payment on the return that you already filed, or you will incur penalties and interests even if the IRS recalculates and sends you a refund.  Basically you should never “owe” the IRS.   

[fitzjeff73]

Do I need to file anything to get the unemployment credit. 

[DawnC]

No, the IRS will issue additional refunds starting next month for those who filed with unemployment before the legislative changes were made.   @fitzjeff73

New Exclusion of up to $10,200 of Unemployment Compensation - IRS release updated 04/01

[lskohn27]

My precise question is:  How is the $10,200 unemployment tax exemption being treated?  Does it come off my reported income, reducing my AGI by $10,200 or is it an itemized deduction, or something else?

[Critter-3]

It reduces the income directly ... look at the Sch 1 lines 7 & 8. 

[Norby0963]

Hello.

I haven't filed my taxes yet, just finished them today, and qualify for this unemployment tax exemption based on the criteria.  However, there doesn't seem to be any place for me to add this entry in the program, and it is not adding it automatically as you described below.

Any suggestions would be appreciated.  Thanks.

[VolvoGirl]

For the Unemployment 10,200 exclusion......

Turbo Tax is updated for it.  You don't have to do anything special to get it.  It is automatic.  Just enter the full amount on your 1099G.  If the exclusion doesn't show up you may need to update the Desktop program. Go up to Online-Check for Updates,  for Mac close and open the program.  If updating doesn't fix it try doing a manual update for Windows

https://ttlc.intuit.com/community/updating/help/manually-update-turbotax-for-windows-software-basic-...

If updating doesn't help or you are using the Online version then delete the 1099G and re enter it.

Or do you have a high income?

If you have unemployment you can exclude up to 10,200 (per spouse) if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

Are you on Windows?  Try doing a manual update 

https://ttlc.intuit.com/community/updating/help/manually-update-turbotax-for-windows-software-basic-...

[maestrowork]

this should be automatically added in Sch 1 - if not, try deleting existing 1099-G’s and rentering them. 

[Norby0963]

Thank you for your response, unfortunately, it still isn't adding the exemption.

I have TurboTax Premier running on a MAC and it says the program/forms are all up to date.  Our income is well under the $150K limit as well.

I've deleted and re-added the 1099-G, still no exemption is there. Is there a way to manually add the exclusion on Schedule 1 Line 8???  I'm concerned if I submit it like this I'll never get it fixed.

Thanks again.