How fast will the software update when the new stimulus passes?

[stevop24]

I have a bunch of tax returns on hold with the new stimulus law pending. Any ideas of timing?

[IRonMaN]

“pending”

That’s the key word.  It’s gonna be awhile.

[qbteachmt]

You would be holding it because of the Fed change for Unemployment income tax treatment, right?

And they haven't even voted on it. I read this evening it might be voted on Wed. Then it goes to the President for signature.

Then the IRS has to issue guidance for how the providers, such as Intuit, should change the forms and put in formulas.

[BBender]

Please tell me you are not serious?  Are they seriously going to pass tax law changes for 2020 at this point?

Surely, the next stimulus payment will be reported on 2021 returns?

[pamdory]

Yes, the $1,400 EIPs will be a 2021 issue.

BUT,

The American Rescue Plan Act includes an exclusion of $10,200 of 2020 unemployment benefits.  The expanded child credit could conceivably affect 2021 estimated tax calculation, although this isn't as crucial.  

The act passed in the Senate Saturday, will be voted on in the House today and is expected to pass.  And the President intends to sign it.  

I'm telling my clients with 2020 unemployment income to be patient as they are going to want to wait for this one.  I don't intend to spend all summer doing amended returns after last year.  

[PATAX]

You may be filing extensions... Don't be surprised.. Just my opinion