TurboTax update to 2021 American Rescue Plan

[Bts88]

I am little confused with the unemployment benefits I received around 18000 in unemployment I am in california  I entered the information correctly and the american rescue plan i think the system applied it but I dont owe anything on taxes for the unemployment  is that normal i mean i did only receive around 3000 dollars total for the 3 months i worked before the pandemic hit. Does the taxes i owe hit after i file or will it say i owe before i hit file. someone  please help im confused

[Rox001]

If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200. If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. Amounts over $10,200 for each individual are still taxable. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation.

https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation

Higher income is excluded. That information is on the IRS page as well

[JamesG1]

@Bts88

You could be reading it correctly.

If you received $18,000 unemployment + $3,000 wages = $21,000 total income.

Subtract $10,500 for the Federal reduction for unemployment under the American Rescue Act.= $10,500 adjusted gross income (AGI).

Less Single standard deduction of $12,400 would result in $0 taxable income on the Federal tax return and no tax.

California calculations are up-to-date.  See also TurboTax Help here.

[jsm52]

I've resolved my own question.  California provides an ACA subsidy in addition to the federal one.  The California subsidy is targeted towards those eligible for the federal subsidy who have higher incomes and therefore receive less of the federal subsidy.  Reducing my AGI with the unemployment exclusion brought my income below the California threshold to receive the California ACA subsidy which I had been receiving during the year.  As a result, I now have to pay back the California ACA subsidy, hence the increase in my California state taxes as a result of the unemployment exclusion.

[Bts88]

Thank you so much for helping I was stressing out 

[greymann]

When will the online software be completely updated to 2021? I'm seeing a lot of conflicting posts. I would like to file but it doesn't seem to be giving me the 10.2k unemployment break or calculated child tax credits correctly.

[DoninGA]

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@greymann wrote:

When will the online software be completely updated to 2021? I'm seeing a lot of conflicting posts. I would like to file but it doesn't seem to be giving me the 10.2k unemployment break or calculated child tax credits correctly.

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The unemployment compensation exclusion was updated across all TurboTax platforms, online and desktop, on 03/26/2021.

The exclusion is reported on Schedule 1 Line 8 as a negative number.  The unemployment compensation received is on Line 7 of Schedule 1.  The result flows to Form 1040 Line 8.

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

The increased Child Tax Credit is effective in 2021 when you file your tax return next year, not on the 2020 tax return.

[LinaJ2020]

Please see the most updated IRS guidelines:  Unemployment exclusion and updated IRS worksheet

TurboTax program has been updated.  Please update your program:

• If you are using the TurboTax CD/Download software program, open TurboTax and select Check for Updates from the Online menu near the top.
• If you are using the online version, it's an automatic update when you sign in and out. 

Please also read: IRS update on unemployment compensation

[greymann]

I have 2 dependents. One is 17. I only see one 1,400 child tax credit on line 28. Are you saying I only get 1 child tax credit even though she should qualify with the new laws? Why were we waiting for the software to update for this year's return if the new COVID laws don't affect taxes until next year?

[denmal]

When will the update be done to include the changes in relation to the Affordable Care Act ???  Will it be done before April 15th ??

[cmBarron]

@denmalsaid, "When will the update be done to include the changes in relation to the Affordable Care Act ??? Will it be done before April 15th ??"

Don't panic. I am also waiting on this. But the tax filing deadline has been extended to May 17th, and I'm sure TT will have it done by then.

[DoninGA]

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@denmal wrote:

When will the update be done to include the changes in relation to the Affordable Care Act ???  Will it be done before April 15th ??

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The due date to pay taxes owed has been changed to May 17, 2021.

The TurboTax software has Not been updated for the Premium Tax Credit adjustment since the IRS has not provided guidance as of this date.

This is the IRS statement concerning the Premium Tax Credit adjustment - https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics

We’re reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. Taxpayers who filed a 2020 tax return and reported an excess advance premium tax credit repayment on Line 29 of Form 8962, Premium Tax Credit, should not file an amended tax return only to get a refund of this amount. The IRS will provide more details soon.

[Praia]

Hi

I cannot find schedule 1 in the online version of turbotax. Can someone please help post the link to it or how to get to it? Thank you

[DawnC]

You can print or preview Form 1040, Schedule 1.   @Praia    Please take these steps to preview your 1040 in TurboTax Online:


1. Login to TurboTax Online 

2. Click on "Pick up where I left off"

3. Select "Tax Tools" from the menu on the left side of the screen

4. Next select "Tools" from the drop-down menu on the left side of the screen

5. Then click "View Tax Summary" from the pop-up menu

6. Lastly, click on "Preview My 1040" from the menu on the left side of the screen.   In the Preview mode, you will see From 1040 and if you scroll down, you will see Schedule 1-3 below Form 1040.   You can also save the return as a PDF to view all forms in your return from the Print Center which can be found in Tools also.     Full instructions.  

[Bolivious]

I'm using Home and Business software and trying to find where Schedule 1 line 8 is to put the Unemployment Credit of $10,200. How do I get there?