When will the $10,200 of unemployment tax exemption go into effect?

[Kfrank55]

Great, now tomorrow ... then tomorrow will be check sunday then before you know it middle of next week ... 

[macuser_22]

They only said it would be updated on 3/19 - no particular time.    Most updates have been late afternoon or night for years.    

And of course, if they discover a last minute problem. they will hold it until the problem is fixed.

[Kidtageous]

THEY DID IT!! The federal has been updated!!

wooooo!!!

[txmet]

where do you see it?  online account or via  software update.  the software wasnt updated when i checked just now

[Kidtageous]

Using the app. Click on review and it should say they blah blah blah because of the COVID relief

[txmet]

that was updated yesterday and they didnt fix it they only put the message in that its being worked on and you should wait for the update or you can continue if you want wthout that 10,200 exemption.  its doesnt have the schedule 1 adjustment yet. supposedly that's coming some time today

[Kidtageous]

[txmet]

so you are using the online account. i use the software (disc ) with updates to software downloaded.  My software hasnt been updated and it says my software is up to date but still ahs the language that still needs to be updated (fed)

[Craig-o]

Well I have some new news.  I just logged into TT online and I got the same screen anyone would get after filing.  It shows my return was accepted on (2/17) with a $127 refund expected (received in my checking on 2/23 BTW).  No notes or anything about any updates pending or otherwise.

So I scrolled down to locate anything about returns getting changed and there is just the button to amend your return.  Last week I went there and just got back the note that the the form 1040X isn't ready yet and I will be notified when it is (after signing up to be notified).

Well today if you click to amend the return, you get the same response EXCEPT in the upper right-hand corner is a NEW REFUND AMOUNT.  In my case it is now $2,772 which I calculate to the exact dollar amount with the change in AGI and affect to both the Saver's Credit as well as the Premium Tax Credit (PTC).

So, there is hope!!  At least in my case, TT's changes produce the correct, new, results.

[Critter-3]

STOP STOP STOP .... the IRS has said that no one should amend any return at this time ... they hope to correct the filed returns for the unemployment situation themselves so do NOT file an amended return now.  

The program may have been updated to reflect the changes but you are NOT to file the return.  Patience will be needed while the IRS tries to get to the millions of returns that need a correction at the same time they issue the third stimulus payment during an active tax season.  

[Craig-o]

@Critter-3 

I wasn't implying that I was going to amend my return.  I should have mentioned that since TT has got the change correct (at least in my case) that the IRS should be able to generate further refunds without the tax payer needing to do anything (as they have recently indicated).

[Sbrown12123]

Yay, finally ready to accept returns!

[rcfran]

The so-called update makes no sense. It first had me add back my wife's W-2 which had already been entered and then effectively doubled her income. After deleting this obvious error, the federal tax appears to be correct after exempting the first $10,200 in unemployment  compensation (which I guess was done automatically by Turbotax?) However, it also reduced my North Carolina tax liability which doesn't make sense since North Carolina taxes UI benefits and I've heard nothing about them exempting the first $10,200.

So why did the state tax liability reduce as well? I'm using TurboTax online.

[kharwick2688]

When will Turbo tax update your software for the impact of the $10.200 exemption in unemployment?  It does not appear that software has been updated?

[Dready]

Perhaps because NC taxes AGI which is effectively reduced by $10,200