Question

Latest info regarding Turbo Tax and the American Rescue Plan for those who have already filed

Forum|Forum|5 years ago
March 25, 2021
1 reply
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As a Turbo Tax user for many years, I'm disappointed that I have not received any direct, updated information from the company regarding the resolving of the American Rescue Plan conundrum for those of us who filed our taxes before it's passage. So my questions are......1) What's the latest guidance from Turbo Tax regarding the American Rescue Plan's impact for those of us who qualify to benefit from the plan but have already E-filed our returns. 2) How will that impact on the state return that we paid an additional $25 to be e-filed to our state? and 3) How we will get a copy of the return(s) if the IRS does a correction on their end without us having to amend a return on our end? Seems this will impact our ability to transfer our information for the tax year 2021. Please clarify.

MaryM428

If you are referring to the taxation of unemployment benefits, our latest information is that you are not to amend your tax return if you have already filed. The IRS will review the returns, recalculate the taxes, and send the difference directly to you
TurboTax is working with the states to resolve the issue of the unemployment taxes charged by states. Each state will announce whether they are going to also offer the same relief from the first $10,200 in unemployment benefits taxes. TurboTax will work with the states to help customers who are entitled to a refund of that money to get their money back.
TurboTax will work on how to update your information so that it will be correct tofr 2021 taxes. We do not yet have any announcement of how or when those changes will be implemented.

American Rescue Plan

B

boncoughAuthor

Just to be sure that I am understanding this correctly....1). once a newly calculated Federal Tax return shows up in my Turbo Tax account (which it recently did) in place of the original one that I submitted...I don't have to refile as it's already in their hands? Or is it? 2). My e-filed state (Michigan) has not been corrected by the Michigan tax division yet....can I assume they will do the corrections just like the IRS did? I am unclear on whether it will need to be refiled or not. Appreciate your feedback.

MaryM428

TurboTax is working with the individual states. We are advising our customers not to amend or refile for the forgiveness of taxes on unemployment. We assume that these adjustments will not require refiling or amending state returns.