Why isn't turbo tax Recalculating my tax return to include the $10200 exclusion on my unemployment federal tax withholding?

[ryon_urdy]

I had 10% withheld for Federal taxes !099-G box 4.  I read over the information regarding how the Unemployment Exclusion Worksheet is to be completed.  I had already completed my tax return but it had been rejected do to AGI that was not matching for 2019 (which I pulled the transcript and it does match what the IRS has on file). Now I want to re-calculate my return so that it includes this exclusion. I worked back through my return and it does not seem to be recalculating to include this change.  What do I need to do?

[DanaB27]

Please be aware that TurboTax is working on implementing the changes of the American Rescue Plan Act of 2021. Please be patient.

If your modified adjusted gross income (AGI) is less than $150,000, then you can exclude up to $10,200 of unemployment compensation paid in 2020 from your taxable income. Amounts over $10,200 for each individual are still taxable.

Please see Unemployment FAQs (scroll down) for details and updates.

[0ldcodger88]

WHEN DO YOU THINK THIS WILL HAPPEN?

[PattiF]

TurboTax Online has been updated to include the $10,200 exclusion of unemployment for those who have not filed yet. We will let you know when TurboTax Desktop has been updated.

[energyerf]

when will my desk top turbo tax show the 10200 exclusion from my unemployment

[Irene2805]

We are working on incorporating the changes to TurboTax CD/Download as quickly as we can.  You can sign up here to receive an email notification when it has been completed. 

The update for the unemployment benefits has been added to TurboTax Online.  Just enter the unemployment benefits reported to you on Form 1099-G and TurboTax will automatically subtract $10,200.
 

[brantwall]

You didn't respond to the question at all. 

[VolvoGirl]

The Desktop program was updated on March 26 (after the posts in this thread).  Try updating your program.  How to update

https://ttlc.intuit.com/community/installing/help/how-do-i-update-turbotax-cd-download/00/26038

If updating doesn't help then delete the 1099G and re enter it.

If you have filed early before the exclusion, the IRS will recalculate your return for the new 10,200 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.

Just keep waiting.  The IRS is sending them out in batches over the summer.

See IRS article May 14, 2021

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

And see,

https://www.irs.gov/newsroom/irs-sending-more-than-2-point-8-million-refunds-to-those-who-already-pa...

Do you need to amend your state return?

https://ttlc.intuit.com/community/state-taxes/help/do-i-need-to-amend-my-state-return/00/2134732

If you didn't file early 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.