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

[macuser_22]

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@Norby0963 wrote:

Thank you for your response, unfortunately, it still isn't adding the exemption.

I have TurboTax Premier running on a MAC and it says the program/forms are all up to date.  Our income is well under the $150K limit as well.

I've deleted and re-added the 1099-G, still no exemption is there. Is there a way to manually add the exclusion on Schedule 1 Line 8???  I'm concerned if I submit it like this I'll never get it fixed.

Thanks again.

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Use the top menu bar "TurboTax -> About TurboTax -> More Info".     The current release is  2020 r27.060 dated Apr 29, 2021.

If you are not on that then you need to update.

[DawnC]

It should already be on Line 8.    There is an up/down arrow on Line 8 as sometimes there are multiple entries on that line.     @Norby0963     You can manually enter it on Line 8 if you are using the desktop software - just go to Form Mode.   But if you have entered unemployment, the exclusion should automatically show up.     On schedule 1, the full amount will show on Line 7 and the subtraction shows on Line 8, see below.  

[MissRose2005]

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

This is already something that we can claim. I found where to put it on my return with my husband yet, I can't put it into the system.  A lot of the experts on this thread are saying that this has not been approved.. If that is the case Why does the IRS have the documentation about it and about what to put in where on the 1040? Please advise on how to enter this in.

[VolvoGirl]

Put what?  Turbo Tax is updated for the unemployment exclusion.  Just enter the 1099G for the full amount of your unemployment.  It will automatically be subtracted if you qualify.   You don't have to do anything else.

If you have unemployment you can exclude up to 10,200 (for each spouse) if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

[Norby0963]

Thank you @DawnC 

I was able to confirm the credit was applied via the form mode, schedule 1 line 8.

@Norby0963 

[Caseyblue]

I efiled my return back in Feb & have received direct deposit refund. I reported $11000 in unemployment as income.

How will this be handled & do I need to do anything?

[maestrowork]

Hold tight and wait for the IRS to do an adjustment and issue additional refunds.  they have started the process this month.  if you flood the IRS now it would just make things worse.  they already have a backlog.  

[VolvoGirl]

@Caseyblue   

If you have filed, the IRS will recalculate your return for the new unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

You can log back in or open your return and it should automatically update your return and show you the new refund. But the updated return won't be sent. The IRS will adjust it for you. You may need to update the Desktop program for it.

[Birddog91]

I sent in my amended returns last week as I received extra credits.  Now I sit back and wait for the extra 4k I didnt think we would be gettng!

[loisemory]

How will I know if I get 10,200 check from irs

[DanielV01]

@loisemory.  You won't get a check for $10,200.  Rather your taxable income will be reduced by $10,200.  This should lead to a larger refund, but it won't be $10,200.

[macuser_22]

You don't get a $10,200 check.   You get back any tax you paid on up to $10,200 of unemployment - it lowers your AGI by that amount.  How much you get back depends on your other income and margional tax rate.     If it was all taxed and you are in the 22% tax bracket, for example,  then you would get back about $2,244.

The IRS has said they will start sending refunds at the end of May and continue through June and July.

[tryingtoammend]

I filed before the unemployment change went into effect. I need to file an amended return to include form 8915 (Cares act ira distribution). I used other software and am now using Turbotax to enter my previously filed data so that I can then amend it. My software was downloaded and updated on 5/14, using Windows. I need to be able to override the -10,200 to get back to my original return. I don't remove the $10,200 deduction, my original numbers on the 1040x won't match. How can I make this work in Turbotax? Or, how can I override Sch 1, line 8 (-10,200), or the appropriate 1040x line. And, since I'm amending, should I then include the -10,200, or wait for the IRS to catch up with that? 

[moniquefiore]

i just logged into my account and it hasnt showed any adjustment at all so what is going on?

[summerdback]

I recevied a refund back in March...last week I downloaded my return and it showed I am to received more than because of the unemployement tax credit. I accidently deleted it and downloaded it today, as of today it is now showing that it reverted back to my origianl refund amount. So, in march I received a refund of $683. When I downloaded the return last week my refund amount changed to $1332. Today, it changed back to $683.