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

[DoninGA]

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@txmet wrote:

I just checked my line 8 it is not on there

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Are you using a Windows or Mac computer?  For Windows click on Online and Check for Updates.  The Windows version is 020.000.1665.  Click on Help, About TurboTax, Version

[txmet]

using windows, home and business edition. that is the version number i have

[kbl1320]

I have the Windows desktop version (TT Deluxe) and did get an update this morning, however, the only update was a new check box on my state return and a review notice to wait for the next update that includes the unemployment 10200 exclusion.

[JerryWest_44]

I just updated my desktop version and my unemployment income exclusion was not incorporated... What gives?

[kbl1320]

here is the update I received today for my Windows desktop TT Deluxe. I did check forms mode and there are no changes to schedule 1 line 8.

Claiming American Rescue Plan Act (ARPA) benefits

There are two ways to claim your ARPA benefits:

1. Apply your benefits to your tax return before you file We're working to include these benefits as part of your return this year. Once the updates are ready, we'll send you an email letting you know it's time to file. All you have to do is sign back in to TurboTax, review and pay for your return, and file. During the review, we'll automatically adjust your numbers to reflect your new benefits.

2. Get your benefits after the IRS processes your return
If you file before our update is complete, your benefits won't be added to the tax return you are preparing now. You can still get them, but the IRS will have to process your tax return first. We'll let you know if any further action is needed, like filing an amended return.

Important: Do not make your own adjustments in TurboTax.
You should file a fully accurate return if you decide to file now. A lot of the calculations in TurboTax affect multiple areas of your tax return. Making your own adjustments could create issues with these calculations and cause problems with the IRS and potentially, some states.

[txmet]

so basically your saying the update received today is , we're working on it with no date

[DLSh]

Same here, using windows desktop home and business. This morning updated and version shows 1665 but nothing on schedule 1 line 8.

[xmasbaby0]

The update for unemployment goes in on 3-19-21---tomorrow.

[DoninGA]

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@txmet wrote:

using windows, home and business edition. that is the version number i have

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My mistake.  The desktop software has not yet been updated for the exclusion on Schedule 1.

[DoninGA]

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@DLSh wrote:

Same here, using windows desktop home and business. This morning updated and version shows 1665 but nothing on schedule 1 line 8.

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My mistake.  The desktop software has not yet been updated for the exclusion on Schedule 1.

[DoninGA]

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@JerryWest_44 wrote:

I just updated my desktop version and my unemployment income exclusion was not incorporated... What gives?

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My mistake.  The desktop software has not yet been updated for the exclusion on Schedule 1.

[fbmcardl2]

The IRS Commissioner today told Congress that recipients of unemployment compensation who've already filed should not file an amended return because IRS thinks they can take care of it themselves:

"IRS Commissioner Charles Rettig said Thursday that he expects to announce soon that people who received unemployment benefit last year will be able to get a tax break included in President Biden's coronavirus relief law without needing to file amended tax returns."

"Rettig said that he anticipates that the IRS will be able to help unemployment recipients receive the tax exemption without them needing to take additional action. "We believe that we will that be able to handle this on our own," he said. "We believe that we will be able to automatically issue refunds associated with the $10,200."

"Unemployment recipients who filed their returns prior to the enactment of the relief package will receive refunds initially that don't reflect the $10,200 exemption, and then will later receive additional refunds, Rettig said." https://thehill.com/policy/finance/543916-irs-chief-unemployment-recipients-shouldnt-file-amended-ta...

Comment:Interesting but I still wonder how they would handle the other income related credits that the reduced AGI from unemployment would impact, as well as  how state returns would be affected by the IRS recomputation?

[Craig-o]

@ fbmcardl2

The IRS Commissioner today told Congress that recipients of unemployment compensation who've already filed should not file an amended return because IRS thinks they can take care of it themselves:

Has anyone had experience with the IRS making changes to their tax returns after filing?  In particular, do you get a copy back so you can verify they performed the changes correctly?  I know you can order transcripts of returns but it would be nice to have a copy that resembles what we submitted.

[raleedy]

You asked: "Has anyone had experience with the IRS making changes to their tax returns after filing?  In particular, do you get a copy back so you can verify they performed the changes correctly?"

Answer in my case: almost always. I hardly ever file without making some dumb mistake that they fix. I always get an explanation.

[irunlikeataxgurl]

@Craig-o 

You will not get a user friendly copy of Form 1040 back. You may receive some sort of statement that shows what you originally reported, the adjustment made by the IRS and the final adjusted number. It may be laid out in columns but having your original return in front of you will make it easier to follow.