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May 31, 2021
Question

New Employment Credit Recapture

  • May 31, 2021
  • 1 reply
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How do I find out or figure out if I'm eligible for this? Is there a tax expert who can help me on this? I'm in the process of submitting it now. Thanks. 

    1 reply

    Employee
    May 31, 2021

    Are you asking about the law that waived federal tax on the first $10,200 of unemployment?   If you are just now preparing your 2020 tax return, the software will take care of that automatically.   When you look at the Form 1040 and Schedules, look on Schedule 1 lines 7 and 8 to see that the $10,200 was not taxed.

     

    PREVIEW 1040

     

    https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

    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.

     

     

     

     

    Or did you file before the law changed?

     

    If you are eligible for the extra refund for federal tax that was withheld from your unemployment the IRS will be sending you an additional refund sometime during the next several months.  TurboTax cannot track or predict when it will be sent.

     

    https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve-already-filed-my-taxes/00/2081053

     

     

    Please read this very recent news from the IRS:

     

    https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-may

     

    https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-exclusion-periodic-payments-to-be-made-may-through-summer

     

     

    https://ttlc.intuit.com/community/tax-credits-and-deductions/help/am-i-eligible-for-a-new-credit-or-deduction-because-of-the-unemployment-income-exclusion/01/2211778

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**