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$ 10,200 deduction for unemployment benefits

Forum|Forum|5 years ago
March 13, 2021
8 replies
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When will TurboTax software be updated to reflect that $ 10,200 of unemployment benefits are not taxed under the recent COVID relief tax bill?

Best answer by DoninGA

After the legislation has passed Congress and after the President has signed the legislation and after the IRS has written the rules, regulations and procedures. And after the IRS has changed any forms or schedules to accept the tax code changes. And after the IRS has approved the changes in the TurboTax program that apply to the tax code changes, then it will be available for the users of the tax preparation software.

This can take anywhere from several weeks to several months before it becomes available.

See this TurboTax support FAQ for information on the American Rescue Plan - https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

DoninGAAnswer

Employee

After the legislation has passed Congress and after the President has signed the legislation and after the IRS has written the rules, regulations and procedures. And after the IRS has changed any forms or schedules to accept the tax code changes. And after the IRS has approved the changes in the TurboTax program that apply to the tax code changes, then it will be available for the users of the tax preparation software.

This can take anywhere from several weeks to several months before it becomes available.

See this TurboTax support FAQ for information on the American Rescue Plan - https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

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Romy90210

I spoke to a TurboTax employee on the phone and they told me that the IRS just released the guidelines for tax software companies to follow and to expect an update of the software by mid-week as the guidelines are easy to implement. People on this forums keep spreading false news left and right. SMH

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TC6872

I see that the web version is now calculating the federal updates, but the installed software version is not (all available updates installed). If I hadn't just purchased the software, I would just submit thru the web. Any idea why I am not seeing the updates in the installed version for federal?

SForrestLO

@TC6872

You can manually update the software, see this Turbo Tax FAQ. Manual Update

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VolvoGirl

Employee

Only the Online version has been updated. The Desktop program has not. So a manual Update won't help yet. If it does let me know.

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micunurse

It is taken too long for turbotax to update for $10,200 deduction.

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JeffreyR77

Both TurboTax Online and Desktop should guide anyone who hasn't filed yet with unemployment benefits how to file at this time.

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LibaK

I prepared my sister's taxes and had included her unemployment income. We have not filed it yet. I've reviewed everything and there's nothing in TurboTax that calculated the $10,200 deduction. I have the Desktop version, not the online version. The TurboTax FAQs seem to imply that one should file first and THEN TurboTax will guide you through the steps to get the deduction. Am I missing something?

"If you haven't filed your 2020 tax return, yet, go ahead and do so. TurboTax will guide you through claiming these additional unemployment benefits."

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Taxes1998

Does anyone know if the program has been adjusted to reflect the $10,200 deduction for unemployment benefits?

DoninGA

Employee

@Taxes1998 wrote:

Does anyone know if the program has been adjusted to reflect the $10,200 deduction for unemployment benefits?

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.

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

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brucenicholas

I just completed my taxes today, 4/10/21, on the desktop version and the forms are not reflecting the $10,200 credit.

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Reecebarb

My unemployment is being taxed on turbo tax….. what form do I need to submit…, it is under 10200.

VolvoGirl

Employee

Have you filed yet? It should automatically update and give you the 10,200 exclusion. Are you using the Online version or the Desktop installed program? Try deleting the 1099G and re enter it.

If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation. 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.

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susanj12

How do I reflect that reduction on the income tax return. Have not filed yet as this reduction makes a huge difference in the bottom line of my taxes. Thank you for your help

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HelenC12

Just enter your 1099-G unemployment benefits in TurboTax. TurboTax automatically adjusts the amount of taxable unemployment.

The $10,200 unemployment exclusion is reflected on Schedule 1 (Form 1040), Line 8, Other income with a description of UCE -10,200.
The total on line 9 carries over to Form 1040, 1040-SR, or 1040-NR, line 8.

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Deb Kelly

Do I have to file both New York and New Jersey for him? Thank you. Sincerely, Deb Kelly

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BillM223

@Deb Kelly

You pay tax on unemployment income (if any) in the state where you reside, not in the state where it came from. So unless your son lived any part of the year in NJ or had NJ source income (like wages), then you do not need to file a NJ return for him.

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