Why hasn't Turbo Tax updated their software for the unemployment exclusion? Other online tax companies have already adjusted customers' accounts.

[SweetieJean]

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

[sr36]

Thank you.  On-Line Taxes has done so.

[VolvoGirl · Accepted solution]

I saw that the Desktop program was updated today for that.  And I think online will be updated tomorrow March 19.

[VolvoGirl]

Hold on.  Maybe not.  My desktop program didn't update it today for it.  And another user that said it was took it back.  

[JeffLiu-8]

TT desktop version of software has not yet updated as of March 23rd.

[sr36]

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.  

[kane3]

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.

[gloriah5200]

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
 

[rantonio6288]

Mine still has not updated. How do i manually update it?

[DawnC]

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

[Anonymous]

I am using the online version which has already been updated and I'm still seeing this message...

[Anonymous]

The message for me reads

"OK, we’ll let you know when it’s time to 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."

[sr36]

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.

[Cynthiad66]

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