The latest coronavirus relief bill just passed is supposed to contain a tax break for UI wages up to $10,200. When will TurboTax be updated so I can accurately file?

[gregisabel1]

My hours were cut at work so I was allowed to collect unemployment too.

[DoninGA · Accepted solution]

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.

[Anonymous]

It passed only MINUTES before you posted this question.  It still has to be signed - so it's actually still not even officially a law yet.  Of course, we know it will be signed but until it is the IRS can't begin to start setting policies and procedures that then have to go to the software companies, etc.  There is absolutely, positively no way anyone can answer this question MINUTES after Congress votes. 

A few weeks at BEST, but it will be buggy.  Possibly a few months.  And perhaps NEVER - perhaps the IRS will say, just file and we'll take care of it.  

[JamesG1]

You are correct.  We do not have specific information on the income qualifications or procedures for the tax changes including a third stimulus payment because the measure has been passed by both houses of Congress but not yet signed into law by the President's signature. 

See here for the most current information on the American Rescue Plan.

IRS information updates can be found here.  TurboTax information updates can be found here.

[gregisabel1]

Thanks, very informative. Yes, I know that the legislation is just going to be signed shortly but I'm wondering if I should file before April 15th or if I should ask for an extension so I don't have to file an amended return later... I have had taxes taken out. I guess I'll just have to wait and see. Thanks again.

[njbod]

I will use the $10200 waived UI wages.  It sounds like you will not be able to help us apply this waiver so what do you recommend?

[DoninGA]

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@njbod wrote:

I will use the $10200 waived UI wages.  It sounds like you will not be able to help us apply this waiver so what do you recommend?

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See this TurboTax support FAQ for information for the unemployment compensation exclusion - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...

Also see this IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021