Well, the IRS has not yet issued procedures for this, so I don't know how they could have done that. Once the IRS does, TT (and the other tax companies) must program and test them, and get IRS approval.
IRS Statement - American Rescue Plan Act of 2021 | Internal Revenue Service
I saw that the Desktop program was updated today for that. And I think online will be updated tomorrow March 19.
Hold on. Maybe not. My desktop program didn't update it today for it. And another user that said it was took it back.
TT desktop version of software has not yet updated as of March 23rd.
This is what I found under the "Review" section of my federal file.
"We'll send you an email when it's time to come back and file. Everything should be ready by early April at the latest."
May be time to look for another online filer.
The online software has been updated for days, can a turbotax employee respond here and give some insight? There's no reason for it to take this long.
The online version of TurboTax has been updated for the unemployment exemption.
There is an update scheduled on March 26 that should contain the change in the desktop version.
Each version has to be updated separately.
IRS first has to take each change in the American Pension Act and update their tax code, then their processing systems, and then send the software developers the information on how to change it in their systems.
If by chance, you have already filed your initial return without the change, IRS has posted a message today:
IRS has posted changes for those who have already filed their returns without the unemployment subtraction which is as follows:
If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.
For additional information, refer to the following link:
IRS - regarding unemployment changes for early filers
Mine still has not updated. How do i manually update it?
To update your software if not set to automatic - click on the Online menu option from the top and then choose Check for Updates. Regarding the unemployment exclusion:
More legislative changes occurred yesterday. TurboTax is not yet fully updated to reflect the most recent legislative changes to unemployment. Here are the 2 most recent updates for unemployment - one for those who have already filed and one for those that have not filed yet. They both pretty much say to wait and to sign up to be notified by email when things have been finalized.
For those that have filed, we are waiting on the IRS to confirm whether or not they will adjust those returns as opposed to having taxpayers amend their returns - they have waffled on this claim, but currently, the guidance is to wait for further instruction. IRS link is below; see underneath the bullet points; it states taxpayers should NOT amend at this time.
For those that have NOT filed, some parts of TurboTax are updated, some are not. Plus, the IRS just made another change (regarding the AGI calculation to determine eligibility for the exclusion), so the program will need to be updated again for that. So, if you have not filed, the guidance from TurboTax is to wait while we get things finalized - which can't happen until they finalize the legislation. Yesterday's changes will probably impact filers that have already filed and claimed the EIC or CTC, but no additional guidance has been issued regarding that yet. But you can still sign up to get the email when we are confident that TurboTax is ready to handle the exclusion as the IRS has prescribed it to be handled. The tax filing deadline has been extended to 05/17.
IRS News Release - New Exclusion of up to $10,200 of Unemployment Compensation This version was released today 03/24 and clarifies the changes in the MAGI calculation and NOT to amend. All 3 of the links included here will update with any future changes as well. So, although other software providers may claim to be ''updated'' for all of the changes, that is likely to not be the case. @rantonio6288
I am using the online version which has already been updated and I'm still seeing this message...
The message for me reads
"OK, we’ll let you know when it’s time to file
My federal was upsdated but not my state. I think that's why we're still seeing that same message. Perhaps TT can clarify that.
Please provide additional information about your issue. We can assist you but we need to know what the question is for us. Are you saying that your federal Unemployment compensation was updated but your state was not.
Use this link to see what your state rules are: Unemployment Compensation Exclusion Per State
I live in Massachusetts. When I clicked on the link TT said you're still updating the software for Mass. It appears my federal was updated. The amount I owe was reduced from when I first prepared the return with TT.
The question is when will Mass state return software be updated.
The Mass software will be updated when Mass has made the changes to provide to TurboTax to implement in the software. There is no date listed. You should receive an e-mail when the software is updated but if you do not receive an email just check back. Now if you are using TurboTax Online, your software will be updated automatically. If you have the CD/Download version, you will need to update your software then the update will occur.
I have a related Question. i already filed electronically for the full amount of unemployment and owe money. i have vouchers printed. if the IRS says not to amend what do i do? also im not sure if you owe taxes if the may 17th extension is for paying also. the rep at the IRS had no clue, go figure.
The late filing penalties are generally significantly higher than the penalties for not paying taxes on time. You may have different types of vouchers. You should have one from the IRS for your 2020 tax return with the amount you owe on that tax return. That amount is due by 05/17. The IRS's latest guidance is for you not to amend your tax return at this time. They will either adjust it and you won't owe (or you will owe less) or they will instruct you to amend the return which will change the amount you owe. So, right now, just wait a little longer until we get clarification.
You may have received other vouchers for estimated taxes - these vouchers may or may not be relevant. We'll automatically include four quarterly 1040-ES vouchers with your printout if you didn't withhold or pay enough tax this year. We do this to head off a possible underpayment penalty on next year's taxes.
You may get these vouchers if you're self-employed or had an uncharacteristic spike in your income this year. For example, you sold stock or took a large distribution from your retirement plan OR received a large amount of untaxed unemployment compensation. You're not required to make estimated tax payments; we're just suggesting it based on the info in your return. If you feel they're not needed for next year's taxes, you can shred them. @scott5763
thanks, Glad to hear I dont have to pay until may and hopefully be adjusted before then. i also did a few returns for friends and their owe will end up a refund so they probably should not pay and wait till the irs adjusts.
Per IRS, if you have already filed your 2020 Form 1040 or 1040-SR, you should not file an amended return at this time. The IRS will issue additional guidance as soon as possible.
See IRS link, click here: https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation
For TurboTax program, to sign up for being notified for the updates, click here: Unemployment exclusion
H&R Block has updated their software for this. Cannot understand why Turbo Tax hasn’t. They appear to have done it for the Turbo Tax on line version but not the home & business desktop version. This lack of updating Along with the fact Turbo Tax no longer consistently works with a Mac makes this software much less desirable than in the past.
@RBELLOWSCLARK wrote:
H&R Block has updated their software for this. Cannot understand why Turbo Tax hasn’t. They appear to have done it for the Turbo Tax on line version but not the home & business desktop version. This lack of updating Along with the fact Turbo Tax no longer consistently works with a Mac makes this software much less desirable than in the past.
The unemployment compensation exclusion was updated across all TurboTax platforms, online and desktop, on 03/26/2021.
The exclusion is reported on Schedule 1 Line 8 as a negative number. The unemployment compensation received is on Line 7 of Schedule 1. The result flows to Form 1040 Line 8.
You need to update your software. Current Release is R.25.0
They have updated the federal but not Massachusetts. My program had all the current updates.