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

[txmet]

there may be an update scheduled for 3/26, but TT has not indicated that this will be in the updated or that it  has been scheduled for any update.  they just keep saying coming soon. did anyone in TT communicate with you that it was in the 3/26 update?

[VolvoGirl]

The Desktop program usually updates every Thursday.

[Cmara2k9]

Ok so I went into the free version of turbotax and did my taxes before the new bill was signed into law. So my taxes were done but i never FINISHED and FILED my taxes. So I log back into today and im wondering do I have to do anything else? I noticed that I previously owed federal taxes and now i don't. Did it automatically adjust or something.  Also the state taxes stayed the same as they were before. So im confused as to whether turbo tax automatically adjusted federal and state or do I still have to make some changes. Really confused 

[xmasbaby0]

The online software has updated for the change for taxing unemployment.   You have not mentioned what state you are in so we do not know if there should be any difference in your state refund or tax due.  The law that just passed was for tax on a federal return.

[macuser_22]

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@Cmara2k9 wrote:

Ok so I went into the free version of turbotax and did my taxes before the new bill was signed into law. So my taxes were done but i never FINISHED and FILED my taxes. So I log back into today and im wondering do I have to do anything else? I noticed that I previously owed federal taxes and now i don't. Did it automatically adjust or something.  Also the state taxes stayed the same as they were before. So im confused as to whether turbo tax automatically adjusted federal and state or do I still have to make some changes. Really confused 

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The IRS says NOT to amend - they will do it and send you any additional refund.

[VolvoGirl]

If you have not filed yet it sounds like it applied the update to your return and you are good.  Don't know about state.  Each state is different how they deal with the unemployment.  But check your federal return over, then go through the state tab again for state to update.

[Cmara2k9]

Spoiler

I'm in NYS and never got any taxes withheld. Currently it says I still owe 500. Does that sound about right?

[gratitudine]

The tax exemptions has been passed.

When will Turbo Tax update. It has been one week.

[ErnieS0]

Yes. The exemption for the first $10,200 of unemployment is available in TurboTax Online. After entering your information, you can verify the exemption by going to Preview My 1040 and looking at your tax form.

• Click Tax Tools in the left column.
• Click Tools.
• Select View Tax Summary in the center.
• Go back to the left column. Select Preview my 1040.
• Form 1040 will display. Use the slider bar to the right of the form to move up and down.
• When you are finished viewing, go back to the left column and select Back

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[crokitski]

What if you already filed your taxes and received your refund? Can you give a quick explanation of what steps to take now with the unemployment tax change? I used the online TT version. My state did not change (PA) as it never taxed UC to begin with. 

[txmet]

if you filed already wait.  according to the irs  they are making adjustments themselves and will send you the updated amount

[Dready]

Yes the advice from the IRS is to wait if you have already filed. Additional refund (if any) will be sent back to you automatically and in fact amending your return might delay it. I am waiting to file once TT gets its act together. It changes a $95 current  liability to a 2000+ refund. I am in Virginia which does not have a state tax so that isn’t changing. 

[ApMike]

Hi @ErnieS0 , I see the UCE and -10,200.00 in my Schedule 1 Line 8 now but my Federal return amount hasn't changed from before the update. If I received $15,000 in UC and the new plan makes the first $10,200 exempt shouldn't my Federal return increase? Is this a glitch in the Turbotax software update? 

Thanks,

Mike

[DoninGA]

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@ApMike wrote:

Hi @ErnieS0 , I see the UCE and -10,200.00 in my Schedule 1 Line 8 now but my Federal return amount hasn't changed from before the update. If I received $15,000 in UC and the new plan makes the first $10,200 exempt shouldn't my Federal return increase? Is this a glitch in the Turbotax software update? 

Thanks,

Mike

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$15,000 minus $10,200 equals $4,800

The amount from Schedule 1 Line 9 flows to the Form 1040 Line 8.  Is $4,800 on Line 8 of the Form 1040?

[ErnieS0]

Hi Mike. Without knowing details about the rest of your income, I can't say. It's possible, for example, that you had $0 tax liability (Form 1040 line 16) beforehand including the employment so lowering your income did not do anything. Or you may have had some tax credits. Many tax credits do not get added to the refund if they are not fully utilized, so reducing unemployment income may have just added unused tax credits.

That's not to say either of those things happened.

You can try deleting and re-entering your unemployment.

You can schedule a Live Review with a Tax Expert who can go over your return.