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Rostyslav456
Level 3

Turbotax Self-Employed Online - American Rescue Plan tax benefit

Hello, 

I'm using Turbotax Self Employed Online to file my taxes. 

I'm done with my federal and tax returns and when I click on "Review" ( as I understand that should be a final step ) I do see: 

 

You get additional tax relief as part of the American Rescue Plan because you told us you received unemployment.
Here are your options:
  • Wait to file while we work to include these federal and state benefits on your return. We’ll save your return and notify you by email once everything’s ready.
  • Or file now and wait for an update from the IRS on how to claim your additional benefits.

 

So, I did a little bit search on the forum to see what is this about, and I found that Turbotax published an update to Online version to support this deduction - 

 

The Online TurboTax has been updated to reflect the federal tax forgiveness for the first $10,200 of unemployment.  The desktop software update is in progress and will be ready soon.  -

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-if-american-rescue-plan-makes...

 

If Online version was updated, why I can't move forward? Does anyone here have the same problem?

 

3 Replies
KrisD15
Expert Alumni

Turbotax Self-Employed Online - American Rescue Plan tax benefit

You can move forward unless you also need to file a state return. The states have not all been updated. You may be able to file the Federal return now (if using TurboTax Online) and the state later. 

 

Please check Schedule 1 to see if the unemployment was offset. 

 

Click   Tax Home

Click   Review   if necessary to get Tax Tools on the left side-bar

Click   Tax Tools   on the left side-bar (you may need to use the scroll bar for the left side-bar to see this)

Click   Tools   on the drop-down list

Click    View Tax Summary   on the Tools Center screen

When you do this,   Preview my 1040   appears on the left side-bar            

Click   Preview my 1040   on the left side-bar

 

 

 

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Rostyslav456
Level 3

Turbotax Self-Employed Online - American Rescue Plan tax benefit

Thanks for the Reply. 

Yes, I'm filling federal + states tax at the same time, filling jointly ( me + my wife ) . 

 

I'm filling in CA, so unemployment benefits are not taxable  ( if that makes any difference ). 

 

I don't think we can take this deduction, because our adjusted income is $151k  ( this includes 2020 unemployment benefits my wife received )

 

but when I'm on Review step I see: 

 

Screen Shot 2021-03-24 at 8.46.59 PM.png

Do I just skip it and click "Continue and file now" or do I need to "wait" until turbotax makes it's update? ( which is weird because link I posted above says it was updated ). 

 

 

MarilynG1
Expert Alumni

Turbotax Self-Employed Online - American Rescue Plan tax benefit

Yes, TurboTax Online has been updated for Federal Returns, but not all states are updated.

 

I would suggest your View/Save/Print your return before filing to make sure your Federal and California returns are correct before filing.

 

When you do enter your 1099-G, as a California resident, and you get to the state module of the TurboTax program, the software should confirm that your 1099-G is indeed CA state-tax exempt. 

 

Click this link for more info from the California FTB

 

 

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