$10,200 Unemployment Benefits Tax Relief Bill

Nope, I'm putting them on the bus and waiving goodbye.

I'm not holding them.

Im holding them for awhile, most people with UI owe so they have no issue waiting to see if may they'll owe less or even get a refund.

Yesterday Maryland has a new law that says for 2020 and 2021 unemployment benefits are not taxed in Maryland (all? some? conflicting info). Within a few hours I had over 30 phone calls and emails from clients. We haven't even seen the law, no idea when the Comptroller will adjust tax returns and when ProSeries will ever adjust their software.

In the old days major tax law changed every 10-15 years and minor ones every 5. Now it changes daily and clients can't give ten seconds to figure it all out.

This job used to be fun.

Yes.  I am holding onto them.  Worth the wait.  I let my clients know they understand and appreciate it.  Makes me sound smart too.  ha.

Leaving it up to the client to make the decision to file now or hold. Most are saying they will wait a few weeks to avoid amending later.

Please help.

Single mom, my temp job just ended. I already filed my taxes & I had the Fed Withholding withheld in advance & I already filed my taxes. This is an additional $1,200 I can really use, my son's father passed away in 2019 & the struggle is real.

Will we be able to amend our 2020 taxes? I already got my refund.

Thank you kindly & God Bless

Very few clients are asking to hold returns, at least in my case... Anyone who is getting a refund wants to file immediately unless the rare case comes up where they made more then 2019 in hopes of qualifying for the stimulus. Unless they extend 4/15 again, I doubt they will have the proper laws and regulations in place prior to tax day for all the programs to catch up.. I'm just hoping we don't get another 3 month extension like last year, that was a nightmare. If not, unless all updates are available by 4/15, people will need to file with full income to meet the deadline overpaying, then amend for a credit which would be an odd situation. 100's of amendments here we come for all returns already filed.

Here is the enrolled bill, H.R. 1319, the American Rescue Plan Act of 2021, as presented to the President:

https://www.congress.gov/117/bills/hr13  319enr.pdf

President Biden signed this bill into law earlier today, March 11, 2021 (a day earlier than had been predicted).  Unemployment up to $10,200 for incomes below $150,000 !!

Is Intuit going to make a change to the software or are we going to have to amend the returns we have already filed - or is IRS going to make the adjustment and just refund the taxpayers who have already filed.

Any news from Intuit ??

Now that the bill is signed, how does this need to be entered in Lacerte? Any ideas on how to move forward?