Unemployment income exemption Stimulus

[DoninGA]

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@Alex1957 wrote:

I have amended the taxes as stated and tried to resubmit them electronically. TurboTax will not let me submit electronically again. Must I mail the amended taxes now?

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The IRS Form 1040-X for amending a 2020 tax return is scheduled to be available on 03/25/2021 (subject to change)

[Hal_Al]

Here's the latest, from the IRS. 

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

They are saying: DON’T TRY TO AMEND

[Njdre80]

You amended a return after you already filed? Maybe I mis-read... because you can't ammend filed returns until after March 25th, when the 1040X form will be available to amend returns. And I believe it does have to be mailed in from a few posts I'm reading. 

[WayneHWilson]

For every simple and straightforward tax question, there is a tax answer that is simple, straightforward, and Wrong. 

Exempting the first $10,200 might be addressed by the IRS in the most simple and straightforward method possible. But it might not. Other calculations are also affected by unemployment income inclusion/exclusion: Social Security, for example (https://www.ssa.gov/ssi/text-income-ussi.htm). Oh, and then there are state taxing authorities that base their tax calculation on the federal return. So, not as simple as we would all hope for it be.

[Anonymous]

@txmet  Please don't do that, it will have unintended consequences beyond the SmartCheck that could delay processing for you.  Keep in mind that people who made various mistakes on their returns last year that delayed processing are still waiting for their 2019 refunds.  No one can say exactly how long, because they IRS has only partially given instructions - they also have to work directly with the software companies to develop the changes (so that the work with the changes the IRS makes)

They do this fairly quickly, but not instantaneously.  If you don't wait, you stand a VERY big chance of delaying things and making a mess for yourself.  It won't be too long.  Wait.  

[Anonymous]

@GIGI12   There is no runaround.  No one can give you a timeframe until the IRS and the software companies have time to figure out what needs to be done. 

While the IRS has issued some guidance, it doesn't cover all situations and there is MUCH more to what has to go on behind the scenes than a few paragraphs on a website. 

TurboTax already has an option for you to sign up for notification when they do make the changes, so sign up and forget about it until you get that e-mail.

[esaldana]

Whenever and however TT changes their software, I really hope it won't affect those of us who have everything completed, ready to go and just haven't filed. Earlier this year I had everything completed but mistakenly under "married filing separately," and when I changed it to "married filing jointly" the software sadly just couldn't handle it. It changed the status but so many errors were created. I called TT for advice and was told the only thing I could do was delete EVERYTHING and start all over again...I'm just saying, that better not happen with this because I have spent many, many hours working on entering all my data! More than a fast turnaround, I really hope they figure out a simple & effective software change, otherwise I will be very sad & upset :( 

[Risingphoenix68]

So the IRS posted the necessary tax forms and instructions to claim the exemption.

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

Based on the IRS instructions above and  your reply, a person who wants to take advantage of the tax exemption would be better off filing a paper tax return. If I understand you correctly, it would be quicker to not use TurboTax because it may take several months for the software to get approved by the IRS. 

[DoninGA]

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@Risingphoenix68 wrote:

So the IRS posted the necessary tax forms and instructions to claim the exemption.

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

Based on the IRS instructions above and  your reply, a person who wants to take advantage of the tax exemption would be better off filing a paper tax return. If I understand you correctly, it would be quicker to not use TurboTax because it may take several months for the software to get approved by the IRS. 

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The software will be updated.  You just need to wait for a bit.

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

[Enigma007]

Deleted

[agnor69]

I saw tonight where the IRS came out how to handle the $10,200 new exclusion. How is turbotax going to handle this I would like to file my return

[DawnC]

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.  Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment. 

If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here.      @agnor69

[macuser_22]

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@agnor69 wrote:

I saw tonight where the IRS came out how to handle the $10,200 new exclusion. How is turbotax going to handle this I would like to file my return

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The IRS has not issued any instructing to e-file providers - only for paper filers who fill out the forms by hand and mail them..

e-file does not file "forms" it transmits data according to a IRS issued "schemas" so the IRS computer can read the data sent to it.  

[dtzak]

Mac_user22. Really don’t care about TT excuses. I paid for a premium tax preparation software, which is not giving premium service. Will be looking elsewhere in the future.

[Hal_Al]

Posted at one of the other several threads on this topic:

It seems like someone on Reddit got answer on when Turbo Tax will release update and they responded 3.19 

Here is link :

https://www.reddit.com/r/Unemployment/comments/m6qx7n/other_turbo_tax_unemployment_update/?utm_sourc...