New unemployment exclusion

Forum|Forum|5 years ago
March 9, 2021
24 replies
45 views

So there is lots of chatter about holding returns to wait until IRS forms have been upgraded to accommodate the new $10.2K exclusion. I doubt if anybody on the forum has any insight as to when the IRS may update a form(s) to accommodate the exclusions? Are we looking at a few weeks, a few months? Anybody with what they think is an accurate estimate?

Thank you!

Larry Caplan

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Its not even signed into law yet, so nobody knows when to expect anything.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

G

garman22

Intuit Community Champion

Yeah, I've been holding all my unemployment clients. Could be a week (if passed) or could be a month or longer. I dont think anyone really knows. Plus it will take awhile for Intuit to pass their testing. That scares me more than IRS.

Just-Lisa-Now-

Intuit Community Champion

I just want to just exclude it on the Other Income line, like we do with Medicare Waiver 2014-7 income. Simple, no waiting for anything, just be mindful of the 150K income limitation and should be good to go!.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

BobKamman

Level 15

Thursday night's speech would be a good time for the President to announce a new filing deadline for everyone of June 15. Tomorrow morning's White House press conference would be even better.

What's significant about your question is that you mention IRS twice and state ncome tax not at all,. Are you fortunate enough to live in a state with no income tax, or one that has already decided not to tax unemployment?

My guess is two weeks for IRS to issue a worksheet for computing the exclusion and change its programs for processing e-filed and paper returns. Remember how they waited until February 12, to make sure they had all the changes from the December 27 law? Then another two weeks for Intuit and other software developers to change heir programs. But state revenue departments may need two or three months, whether or not they conform.

L

lcaplanAuthor

Level 3

Hi Bob. Yes, I am in Texas. No state income tax. Seven of the nine states without income tax are red states. (Just thought I would throw that in there). I appreciate your reply. Hopefully, you are accurate with your two week prediction. Thank you Bob. Take care.

BobKamman

Level 15

I just finished a return for a client in Texas. On a $500K home they pay nearly $10K in property taxes. The same home here in Arizona would be taxed at about $3K. And we have year-round electricity and running water here. Of course, we're not as close to Cancun.

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