TurboTax update to 2021 American Rescue Plan

[TheWaitingIsTheHardestPart]

Still waiting here. Have been getting the "DO NOT SUBMIT; WE'LL SEND YOU AN EMAIL" prompt for about 3-4 weeks now...

[craveking]

I got that message as well even though the three major issues were addressed - premium tax credit (and the resulting medical expenses problem) and the $10,200 UI exclusion. I submitted anyway and both returns were accepted within an hour by State of CA and Feds. I checked with TT and they told me to submit. My guess is that message has not been deleted by their engineering staff.

[DawnC]

If you have already received your original refund and your return has other credits that changed (had a Premium Tax Credit generated with the change in MAGI) - it is okay to send the amendment.   If only UE changed, then you do not need to amend, the IRS is going to send additional refunds for the UE changes.   Some states are still not fully updated.  

[denmal]

The online version was updated and I submitted my returns and they were accepted after being rejected earlier prior to the update.  I would try again 

[eremitic]

I filed my state taxes on Mar 28, because the TurboTax guidance page (https://ttlc.intuit.com/community/internal-revenue-service/help/how-is-my-state-taxing-unemployment-...)

said "TurboTax calculations are correct and up-to-date for your state. You can go ahead and finish and file your state return."

I just went into my account to check something, and the amount due on my state taxes has changed. Since I have already filed and paid my state taxes, I guess I have to file an amended return, correct? I can't see where to do that on my TurboTax account - can someone help? Thanks.

[ThomasM125]

@eremitic You should wait until the due date of your state tax return to file an amended return. It is possible that the state will adjust your return automatically and send you an invoice for the tax due, it which case you won't have to amend it.

You will see an option to amend your tax return on your home page in TurboTax when you log in. 

[eremitic]

Thanks @ThomasM125, but there is no tax due - according to the amount shown on TurboTax, I should be getting a refund. I don't suppose they will send that without me filling an amended return. I'll wait until after May 17

[namlebug]

Decided to check my already file taxes on Turbotax today looking for info for the 10,200 unemployment tax exclusion and any timetable..  After scrolling through the message boards and finding no definitive answer, I decided to take a look at my tax return paperwork on Turbotax, and saw that ON THE 1040 FORM the 10,200 exclusion had been entered and my refund was increased over $1200.00. If you want to see how your refund will change, doing this did that.

[tgardner64]

I updated my Turbo Tax on May 14. It is not calculating the reduction in taxes the ARP allows. Their help site just says "Don't worry. TT is updated, and it will calculate the deduction."

Not happening. What gives?

Is there a way to do it manually on the forms?

[VolvoGirl]

@tgardner64   Did you file yet?  Maybe it's already on your tax return.  Or your income is too high to qualify.

If you have unemployment you can exclude up to 10,200 for each person if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

If you haven't filed and the exclusion doesn't show up and reduce your income then delete the 1099G and re enter it.

[xmasbaby0]

Are you using the CD/download?  Switch to forms mode and look at your schedule 1 lines 7 and 8.

[tgardner64]

Thanks. Based on a number of helpful posts, and after hours of trying to figure it out on my own, I did go to the Forms, and there was the deduction of $10,200 on Line 8. So, submitted, done! Thank you chat friends.

As a Communication professor, I would suggest that Turbo Tax could do a lot better job of explaining this other than just saying,"We're updated - trust us."

[jlk4]

Can the deduction be made manually?

James

[VolvoGirl]

The deduction for the 10,200 unemployment exclusion?  No,  it is automatic.  Turbo Tax is updated for the 10,200 exemption.  You don't have to do anything special to get it.   Just enter the full amount on your 1099G.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

If the exclusion doesn't show up and reduce your income then delete the 1099G and re enter it.

Or do you have a high income?

If you have unemployment you can exclude up to 10,200 (per spouse) if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

[DawnC]

Which deductions are you referring to?   @jlk4