What do I do to remove my unemployment payments from my 2020 Income taxes? I owe taxes and have already filke my Fed. taxes, did not pay taxes yet?

[nanblack1957]

new rules allow not to report up to 10,000 of your received unemployment payments.

[Opus 17]

For now, just wait.  The IRS commissioner testified to Congress that the IRS might be able to adjust people's returns for them, and send the additional refund due, but no official announcement has been made.  If the IRS does not do an automatic adjustment, you would need to file an amended return.  However, because of IRS backlogs it is likely to be 6 months or more before you see payment of an amended refund.  So I think it's worth waiting a couple weeks to see if the IRS makes any further announcement for people like you who have already filed. 

https://www.irs.gov/taxtopics/tc418

[Irene2805]

If you are using TurboTax Online, just enter the amount of unemployment reported to you on Form 1099-G.  TurboTax will automatically subtract $10,200 from the benefits you entered.

If you are using TurboTax CD/Download, please be patient.  We are working as quickly as we can to include the update.

[Opus 17]

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@Irene2805 wrote:

If you are using TurboTax Online, just enter the amount of unemployment reported to you on Form 1099-G.  TurboTax will automatically subtract $10,200 from the benefits you entered.

If you are using TurboTax CD/Download, please be patient.  We are working as quickly as we can to include the update.

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@Irene2805 this taxpayer has already filed their return. 

[Irene2805]

Good catch, Opus 17, I missed that.  

Since you have already filed your return, the IRS has stressed -- do NOT amend at this time. We do not yet have updated guidance for those who have filed their returns, but please see this TurboTax Help article:  How do I get the new unemployment benefits if I’ve already filed my taxes?  It has the latest information and contains a link for you to sign up to be notified when changes occur.

[scnamesux]

I know through the application that this update hasn't been deployed yet.  I had my taxes finished over three weeks ago & had both unemployment benefits along with associated tax withholdings & there's been no change in my return amounts?  There are a lot of people trying to get refunds to help out there current situations due to covid-19. 

[Irene2805]

We are working on incorporating the changes to TurboTax CD/Download as quickly as we can.  You can sign up here to receive an email notification when it has been completed. 

The update for the unemployment benefits has been added to TurboTax Online.  Just enter the unemployment benefits reported to you on Form 1099-G and TurboTax will automatically subtract $10,200.

@scnamesux

 

[fanfare]

if you already filed you have to pay the amount shown on your return.

Sooner or later IRS will refund some of that due to the change in the law.

IRS has said they will take care of it.

[Opus 17]

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@fanfare wrote:

if you already filed you have to pay the amount shown on your return.

Sooner or later IRS will refund some of that due to the change in the law.

IRS has said they will take care of it.

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No, the IRS has not said that.  The IRS commissioner testified to Congress that it might be possible, but no official announcement has been made.  Taxpayers who have already filed should wait for an official announcement from the IRS.  Taxpayers who have not filed, should wait until the software is completely updated.

[Opus 17]

Today (March 23, 2021) the IRS updated their page on unemployment compensation to confirm that if you have already filed your return, the IRS will adjust your return for you and send you an additional refund, if owed.

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

If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.