TurboTax update to 2021 American Rescue Plan

[baluku2002]

The American Rescue Plan just passed. The TT website mentions the new stimulus checks and some other aspects of this new Act. However, it will also affect income by forgiving $10,200 in unemployment payments for each spouse and forgive paying back Advance Healthcare Tax Credits for 2020 as a result of unanticipated increases to income from unemployment benefits.

Both of these affect my 2020 taxes. The current calculations in my TT account do NOT reflect the new changes in law and I haven't seen any indication on the TT website about when they will update calculations.

Can SOMEONE from Turbotax please inform the customers: when will Turbotax be updated to reflect the new tax provisions in the American Rescue Plan Act? I would've thought TT had these ready to go in the event it passed.

[xmasbaby0]

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

You are among millions who have now been affected by a mid-tax season change in the tax law.  Patience will be necessary.

TurboTax will update the software for the unemployment but there is no timeline yet.

It can take weeks to several months or more for the changes to be made to tax software.   First the IRS has to change its forms.   The tax software has to be changed; the IRS has to test and approve of the software.   Do not expect changes in the software to happen quickly.   TurboTax may have more information in the near future AFTER the bill is signed into law, and some more details emerge about how Congress and the IRS will implement the changes.

[dh2004]

Would you advise that I just take away $10,200 from my adult sons unemployment or wait for the added IRS Tax Form?  He currently has to pay a couple thousand in taxes but if we take out the $10,200 he actually will get a refund. 

[baluku2002]

I am in the same situation. Turbo Tax isn't being forthcoming in when it will  have everything updated, if it will before or AFTER taxes are due.  

TURBO TAX, please inform your customers as to whether the needed changes will be done before or after the tax deadline.

thank you.

[baluku2002]

The bill HAS been signed into law. It is in effect. Please provide some guidance as to when Intuit will likely make the necessary changes. I understand that TT needs guidance from the IRS as to how to incorporate the changes into practice, but your customers need to know whether to expect the updates to happen BEFORE or AFTER taxes are due in April.

[xmasbaby0]

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

You are among millions who have now been affected by a mid-tax season change in the tax law.  Patience will be necessary.

TurboTax will update the software for the unemployment but there is no timeline yet.

It can take weeks to several months or more for the changes to be made to tax software.   First the IRS has to change its forms.   The tax software has to be changed; the IRS has to test and approve of the software.   Do not expect changes in the software to happen quickly.   TurboTax may have more information in the near future AFTER the bill is signed into law, and some more details emerge about how Congress and the IRS will implement the changes.

[dm1979]

Can you just reduce the amount of unemployment received by the $10,200 and let the software calculate?

Why will is take so long to get the software updated?  Taxes are due in 5 weeks

[xmasbaby0]

NO you cannot just reduce your unemployment amount.   This law passed a couple of days ago.   Have some patience so that the IRS can give directives and guidelines to the software companies.    Do you want to file your tax return correctly the first time or spend months waiting for the IRS to process an amended return if you use "self help" and mess it up?

[Wally1600]

The IRS will not make any form changes. They have issued these instructions.

New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service (irs.gov)

I have been able to enter the credit amount on Line 8 of Schedule 1 and the tax is correctly calculated. I just need to enter a description of "UCE". It is currently showing a description of Gambling Winnings. Is there an easy way to override this?

[staceysnope]

how did you enter this information in turbotax?

[xmasbaby0]

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

You are among millions who have now been affected by a mid-tax season change in the tax law.  Patience will be necessary.

TurboTax will update the software for the unemployment but there is no timeline yet.

  If you have not e-filed yet—-wait.   And if you already e-filed and want to amend for this—WAIT.

Please read this very recent news from the IRS:

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

[staceysnope]

Based on the IRS link you provided, there will be a new Unemployment Compensation Exclusion Worksheet that you need to fill out that will be available at some point.  This will take the information and put it properly in line 8 of schedule 1.  So, we need to wait for that worksheet.

[Wally1600]

Go to Schedule 1 Line 8 and click on the amount field. A magnifying glass will appear. Double click on this and it will take you to the workshheet for Schedule 1 Line 8. When you get to the worksheet enter -10200 on Line 22 with a description of "UCE".  Click off the line and it should update correctly. Go back to Schedule one and you should see UCE under Line 8 with an amount of -10200.

[Wally1600]

I agree you need to manually complete the IRS worksheet to make sure you qualify for this exclusion. If you do this is how you can correctly enter the exclusion in Turbo Tax until they can get the programs updated. I don't plan to wait for that.

Go to Schedule 1 Line 8 and click on the amount field. A magnifying glass will appear. Double click on this and it will take you to the workshheet for Schedule 1 Line 8. When you get to the worksheet enter -10200 on Line 22 with a description of "UCE".  Click off the line and it should update correctly. Go back to Schedule one and you should see UCE under Line 8 with an amount of -10200.

[xmasbaby0]

Please read this very recent news from the IRS:

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