When will TurboTax reflect the changes for the unemployment income from the American Rescue Plan?

[JohnB5677]

If you've filed your return, do not do anything yet.  If you haven't filed you should file as usual.

The IRS will issue guidance about what to do if you already filed.  Making part of your unemployment tax-free would increase your refund or reduce your tax. Wait until the IRS has issued the instructions before you do anything.

You will not get a new 1099-G. The 1099-G reports the full amount of unemployment benefits that were paid to you, whether or not it is all taxable. The 1099-G does not show how much of it is taxable or not taxable. Any adjustment of the taxable amount will be made on your federal tax return, or on an amended federal tax return, or by the IRS.

[Anonymous]

WEll, the only problem with me filing as usual is the difference in owing 2600 versus 400

[JotikaT2]

I recommend waiting to file to avoid any delays in processing your return as this will directly affect you.

The tax treatment is still being determined at this point by the IRS.  According to the newly passed legislation, the first $10,200 on unemployment earned in 2020 would be considered nontaxable if your household income is less than $150,000.

IRS Statement on American Rescue Plan

Once the IRS issues some guidance, TurboTax will be able to update their software accordingly.  

How will the 3rd stimulus affect me

You can sign up for updates on the link below:

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