Why hasn't Turbo Tax updated their software for the unemployment exclusion? Other online tax companies have already adjusted customers' accounts.

[sr36]

I live in Massachusetts.  When I clicked on the link TT said you're still updating the software for Mass.  It appears my federal was updated. The amount I owe was reduced from when I first prepared the return with TT.

The question is when will Mass state return software be updated. 

[Cynthiad66]

The Mass software will be updated when Mass has made the changes to provide to TurboTax to implement in the software.  There is no date listed.  You should receive an e-mail when the software is updated but if you do not receive an email just check back.  Now if you are using TurboTax Online, your software will be updated automatically.  If you have the CD/Download version, you will need to update your software then the update will occur.

[scott5763]

I have a related Question.    i already filed electronically for the full amount of unemployment and owe money.  i have vouchers printed.   if the IRS says not to amend what do i do?   also im not sure if you owe taxes if the may 17th extension is for paying also.   the rep at the IRS had no clue, go figure. 

[DawnC]

The late filing penalties are generally significantly higher than the penalties for not paying taxes on time.   You may have different types of vouchers.   You should have one from the IRS for your 2020 tax return with the amount you owe on that tax return.   That amount is due by 05/17.   The IRS's latest guidance is for you not to amend your tax return at this time.  They will either adjust it and you won't owe (or you will owe less) or they will instruct you to amend the return which will change the amount you owe.   So, right now, just wait a little longer until we get clarification.

You may have received other vouchers for estimated taxes - these vouchers may or may not be relevant.   We'll automatically include four quarterly 1040-ES vouchers with your printout if you didn't withhold or pay enough tax this year.   We do this to head off a possible underpayment penalty on next year's taxes.

You may get these vouchers if you're self-employed or had an uncharacteristic spike in your income this year.   For example, you sold stock or took a large distribution from your retirement plan OR received a large amount of untaxed unemployment compensation.   You're not required to make estimated tax payments; we're just suggesting it based on the info in your return. If you feel they're not needed for next year's taxes, you can shred them.   @scott5763

[scott5763]

thanks,  Glad to hear I dont have to pay until may and hopefully be adjusted before then.    i also did a few returns for friends and their owe will end up a refund so they probably should not pay and wait till the irs adjusts.  

[LinaJ2020]

Per IRS, if you have already filed your 2020 Form 1040 or 1040-SR, you should not file an amended return at this time. The IRS will issue additional guidance as soon as possible.

See IRS link, click here:  https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation

For TurboTax program, to sign up for being notified for the updates, click here: Unemployment exclusion

[RBELLOWSCLARK]

H&R Block has updated their software for this. Cannot understand why Turbo Tax hasn’t. They appear to have done it for the Turbo Tax on line version but not the home & business desktop version. This lack of updating Along with the fact Turbo Tax no longer consistently works with a Mac makes this software much less desirable than in the past. 

[DoninGA]

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@RBELLOWSCLARK wrote:

H&R Block has updated their software for this. Cannot understand why Turbo Tax hasn’t. They appear to have done it for the Turbo Tax on line version but not the home & business desktop version. This lack of updating Along with the fact Turbo Tax no longer consistently works with a Mac makes this software much less desirable than in the past. 

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The unemployment compensation exclusion was updated across all TurboTax platforms, online and desktop, on 03/26/2021.

The exclusion is reported on Schedule 1 Line 8 as a negative number.  The unemployment compensation received is on Line 7 of Schedule 1.  The result flows to Form 1040 Line 8.

You need to update your software.  Current Release is R.25.0

[RBELLOWSCLARK]

They have updated the federal but not Massachusetts.  My program had all the current updates. 

[HTL1]

I just efiled my state tax return. The online version for MA has not been updated. 

[JohnB5677]

On April 1, 2021, Governor Baker signed legislation which allows taxpayers with household income up to 200% of the federal poverty level to deduct up to $10,200

of unemployment compensation from taxable income on their Massachusetts tax return.

 If you've already filed your return, the IRS will recalculate your taxes, adjust your account accordingly, and send any refund amount directly to you.  States are following a similar process.