With the house set to approve $10,200 of unemployment being tax free, with turbo tax automatically adjust this in their system? I'm waiting to file because of it.

[kristinyonkers]

This will make a huge difference for me just wondering if it will reflect quickly on turbo tax side or what.

[DoninGA]

After the legislation has passed Congress and after the President has signed the legislation and after the IRS has written the rules, regulations and procedures.  And after the IRS has changed any forms or schedules to accept the tax code changes.  And after the IRS has approved the changes in the TurboTax program that apply to the tax code changes, then it will be available for the users of the tax preparation software.

This can take anywhere from several weeks to several months before it becomes available.

[fanfare]

tax break on UI payments is a 2021 law. that goes on your 2021 tax return if you collect UI in 2021.

[CM2150]

Nope.  The new law is an exemption against 2020 Unemployment received and applies to 2020 taxes 

[cbs0605]

Not true.  The $10.200 UI tax waiver is for 2020 tax year not 2021.

[ccdragonfly]

The congress already wrote all the rules, regulations, and procedures for the past weeks; that is why it took a while before it went over to the Senate.  It has passed the Senate...and everyone knew yesterday when you wrote your reply, that of course the President would sign it. (It's his bill!)  He has signed it.  Turbo tax should have been starting to update their program this week and at least notify us that it that it would be done within the next week.  Several months is absolutely a no go for me and I'll use another service thank you.

[ccdragonfly]

Why do people answer on this page when they don't know.  It's absolutely targeted for year 2020 (last year) it covers the boost that was given to the unemployed.

[fanfare]

oops. sorry, my mistake. I didn't read the bill !

[goodty1]

wrong

[rpendolphia]

does this mean everyone that had uc benefits will have to complete a 1040x

[CM2150]

Now that the bill is approved, the IRS has to determine how to support the change.  Stay tuned. 

[Girle2077]

When should I be filing my taxes to get the credit?

[Dkfowl]

Yeah, it should be that way, normally,  but the leg work for this should of been done.  It should  just need applied to tax programs.    This was known about for several months.   With democratic majority, also, made it inevitable.   So the planning and details should of been all worked out.

[Dkfowl]

No, that is not the case.   It's for 2020 tax year for unemployment collected in 2020   It probably will be expanded to 2021 for those who didn't get to file a amended return 

[JoeK29]

It applies to your 2020 taxes. The height of the pandemic and unemployment claims were in 2020.