Level 2

Question

When will Proseries update the new unemployment waiver where $10,200 of Unemployment is no longer taxed by Federal.

Forum|Forum|5 years ago
March 7, 2021
43 replies
143 views

"Senate Democrats reached a compromise on Friday to narrow the scope of the enhanced unemployment benefits in the $1.9 trillion Covid-19 relief package, cutting the benefit from $400 to $300 a week but allowing the enhanced benefits to run through early October.

As part of that compromise, Democrats added language to the bill that would provide a tax waiver on up to $10,200 of unemployment insurance benefits for 2020, staff for Sen. Ron Wyden, D-Ore., confirmed Friday to CNBC Make It." https://www.cnbc.com/2021/03/05/unemployment-benefits-deal-to-waive-taxes-on-first-10200-dollars-of-ui.html

What will happen to the returns we filed with the amount already taxed?

When can we see the $10,200 waiver in our software?

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

It still hasnt been signed into law yet, probably take a few weeks for the software companies to catch up.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

sjrcpa

Level 15

When we ordered and reordered counters we didn't anticipate this one.

The more I know the more I don’t know.

itonewbie

Level 15

https://proconnect.intuit.com/community/proconnect-tax-discussions/discussion/everything-i-ve-read-indicates-that-10-200-of-unemployment-in/00/137345

---------------------------------------------------------------------------------Still an AllStar

IRonMaN

Level 15

Holy crap. Unbelievable.😮

Slava Ukraini!

qbteachmt

Level 15

"The legislation differs in at least three major ways from the bill that passed the House of Representatives last week. The final Senate package will have to be approved again by the House before it can be sent to President Biden for his signature.

House Majority Leader Steny Hoyer said the House will vote Monday night on the rule laying out terms for the bill’s consideration, and the House will vote on Tuesday on the Senate-passed version of the bill.

Senate Majority Leader Chuck Schumer said he has "no doubt” Biden will sign the American Rescue Plan before the March 14 deadline."

I think you are a bit early on this. It ain't even over, yet.

Don't yell at us; we're volunteers

dkh

Level 15

🥃 someone please teach me how to supersize this

qbteachmt

Level 15

"someone please teach me how to supersize this"

Buy the bigger bottle, next time.

Don't yell at us; we're volunteers

Slats

Level 5

What I expect is that the software will not be updated until close to the end of the original date for filing. It doesn't appear there is any traction for moving the filing deadline beyond 4/15 of this year even giving consideration to the massive loads placed on taxpayer and tax professionals shoulders. We just all have to hang in, hang on and hang loose for the rhythm to catch up to the lyrics. As for previously filed returns, there will be the need for an amendment, Form 1040X. Thankfully those are now e-fileable which will lessen the burden. And you can be a hero to your clients by accessing them another tax refund! Expect with all the "noise" in the system to experience delays in the processing and receipt of these additional refunds though. I speculate between 8 to 12 weeks for issuance of refund after filing 1040X. I have filed approximately 500+ returns with unemployment so I am now going for my "fourth wind" and looking forward to a late spring and summer of lot's of time at the desk and lot's of phone conversations with clientele. Just another rainbow after the storm. As for ProSeries; I would expect a delay of at least 2 to 4 weeks before even alerts are seen about the changes. As time has gone by with my last 27 years of using the software, I have seen things be delayed more often than previously. It is nice to be able to update electronically, though I miss the days of the CD mailing and updates application at times. Seems the program worked better back in the day.

Just-Lisa-Now-

Intuit Community Champion

IRS already released guidance for reporting this UI adjustment, no software update needed. They've also said dont file any amended returns, sounds like this may auto adjust returns that have already been filed.

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

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

R

rjeibasa127

Level 2

from the link you provided, we need to enter negative amount which needs to be excluded in the unemployment income in Schedule 1, line 8.

If the result is less than zero, enter it in parentheses. On the dotted line next to Schedule 1, line 8, enter “UCE” and show the amount of unemployment compensation exclusion in parentheses on the dotted line. Complete the rest of Schedule 1 and Form 1040, 1040-SR, or 1040-NR.

> in pro series, schedule 8 Line 1 is automatically calculated and cannot enter negative value. No portion also to out UCE was instructed by IRS. Should we override this value and enter the negative amount? Maybe the software will still make some updates about this.

D

Davisville

Level 2

see IRS solution at New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service (irs.gov)

E

Ember-K

Level 3

I read the IRS guidelines for the exclusion and I can't make heads or tails of it. I'm assuming that Proseries does not have this worksheet yet and that's why their line numbers aren't making sense.

I have read through previous statements here and Lisa's seems to be the most effective with putting the negative number on the other income line on Line 8 schedule 1. However if a worksheet is going to be released by Proseries a date would be helpful.

Stay sane ya'll!!

Cheers!

R

RAMTaxPrep

Level 2

I'm going to give this until April 1st and then probably adjust manually.

Right now I'm putting those returns on "hold" until further notice.

RED DRAGONAuthor

Level 2

Jump to solution

Latest Update: We expect an update to ProSeries on Thursday, March 18, 2021 in the afternoon to address changes for federal returns. For more details see Generating the Unemployment Compensation Exclusion in ProSeries.

*************

Intuit is working closely with the IRS and is committed to getting you the latest IRS guidance for TY20 and what the American Rescue Plan means for you and your clients. We will keep you updated on new IRS guidance and when you can expect programs to be updated.

For the latest and greatest, check out our COVID-19 Resource Center or the Tax Law and News on the Tax Pro Center.

Check out our newest Help Article for Common Questions on the Unemployment Compensation Exclusion

Of course we will also post any relevant product updates here in the Accountants Community under the News & Updates sections in the community.

Please check here for the latest on the American Rescue Plan.

~~~3/18/2021 3:00PM STILL WAITING FOR THE UPDATE