When will Turbotax put Maryland's RELIEF act into effect and remove unemployment income from filers' FAGIs?

[mdhowell33]

Is the md taxes ready to file yet with the née md relief law for unemployment I have been waiting to file Ans it’s the end of April Ans it still doesn’t say they are ready on your website to file state side of taxes 

[vince88]

I am not sure where the confusion is? If you are going to file with TurboTax anyway, pay the filing fees for the federal and state taxes, and then you will be given access to the actual tax forms that will be filed for you-- you can see where the deductions are taking place here if the TurboTax UI is not making sense for you.

On federal form 1040 line 9, that is your income. This is calculated by taking your income + (total unemployment compensation - $10,200). So $10,200 is already subtracted from your taxable income.

Your income above is input into MD form 502 line 1. So $10,200 is already subtracted from your MD taxable income. Then the excess of $10,200 is also subtracted from MD taxable income (MD form 502LU line 7) to get your MD taxable income. So if you are within the income threshold, the MD taxable income has ZERO taxed on total unemployment compensation ($10,200 and any excess).

[Mollygirl123]

I believe Turbo Tax has updated the MD tax forms.  

[Mike3206]

State doesn’t take taxes out of unemployment. Federal does if you request it. So basically it’s deducting your unemployment income from your gross income to put you in a lower tax bracket and your not paying taxes on the state or Federal. If you had taxes taken out of unemployment for Federal then your refund will be larger this year for Federal.

[Arob2230]

I too am confused on this, Thursday morning my MD money back went up a little over 1000. However when I go to file it still says do not file state yet it is not fully updated. So I’m wondering if they fixed the amount based on the 10,200 which puts you at a lower tax bracket. But did not do the state tax forgiveness for state taxes that you paid. I had taxes taken out in 2020 for Maryland so I might hold off till Turbo says I’m ok to file. There has to be a reason it’s still telling me not to file when I attempt to. I think we are on the same page. 

[AmyC]

Yes, the MD 502LU form is a part of the system. You can view the form and make sure your return is correct. 

[mdhowell33]

How do I view the form when I got it file my refund increased 800.00 but when I got to file it still says I should wait so idk if I should wait or go ahead and file state I filed federal already last night 

[Mike3206]

Are you doing amended return or just now filing for this year?

[mdhowell33]

Just now filing for the year 

[mdhowell33]

So did I file

md yet or did u wait I’m having the same issue 

[mdhowell33]

The issue is when we go to file it is saying not to file md yet I’m not sure why u have to be so ride in your reply !!!!

[mdhowell33]

State does take taxes out of unemployment not sure what state your in but md takes it out 

[Arob2230]

I’m with you, people say it’s ok to file but it keeps saying not too yet. I checked it shows all states are good aside from MD, WVA and DC. It would be nice to get a clear answer from one of the actual workers. Answers are unclear and it’s frustrating!!! 

[mdhowell33]

Right Ans state is the first one h get back so now we’ve already waited forever my refund went up 800 but I still can’t file soenthing updated clearly so why can’t I file 

[cj48]

A lot of people are waiting to file their MD state tax returns, because the TurboTax software is not updated yet. Someone on this thread said it would be ready today, April 26th. The TurboTax page link below still says the forms are not updated yet for MD, DC, and WV.

https://ttlc.intuit.com/community/internal-revenue-service/help/how-is-my-state-taxing-unemployment-...

Every other state is ready. When is this going to be ready? We have been waiting forever. Any idea of a time estimate of arrival? What a bunch of hogwash.