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Level 2
March 13, 2021
Solved

nontaxable unemployment

  • March 13, 2021
  • 3 replies
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When will the program update to not tax the first $10,200 in unemployment under the new stimulus package? Should we just use the 'repayment' option on the amount for now, or wait to file?

 

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Best answer by Just-Lisa-Now-

No update needed, you should follow the instructions issued yesterday by IRS

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation

Be sure to research how your particular state might be handling this.

3 replies

Just-Lisa-Now-
Intuit Community Champion
March 13, 2021

No update needed, you should follow the instructions issued yesterday by IRS

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation

Be sure to research how your particular state might be handling this.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 3
March 13, 2021

So are we to go ahead and enter on line 8 other income "UCE" and the corresponding amount as a negative amount?  There will be no program update that we should wait for? I realize that you have to considered your own specific state rulings.

Just-Lisa-Now-
Intuit Community Champion
March 13, 2021
yes, BUT if these returns also have payback of APTC, thats another change in the Recovery Act that Im not sure how it will be dealt with on the return or if IRS will make that adjustment themselves.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 2
March 13, 2021

And IRS says NOT to amend returns (at least not yet). A return in process that I tried to adjust for unemployment resulted in it calculating EIC, not sure if that will be acceptable to IRS. Expect guidelines to be issued by mid-week (3/17/2021) then factor in time for software companies to adjust software parameters. Don't expect immediate response/fix for this issue.