$10,200 Unemployment Benefits Tax Relief Bill

[SanBrunoTaxGuy]

I think this applies to a lot of people really.  2020 was a bad year.  Laid off, business lock down.  A lot of people might end up qualifying for the back credits and the 3rd one coming up.

[Jon-L]

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 ??

[IRonMaN]

Yes:

Solved: When is Intuit software going to be ready for the ... - Intuit Accountants Community

[PShah19]

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

[dascpa]

Post #315,000 on this topic.  Seriously, you expect the law signed one day and the IRS, the states and the software company to have updated everything in 24 hours?  It will be weeks or longer for this to happen.

[qbteachmt]

"Any ideas on how to move forward?"

Well, signed yesterday means:

Let the IRS figure out how the math will work.

Let the IRS figure out which forms will need to update.

Let the IRS notify and make the info available to the tax filing software providers.

Let the tax filing software providers make their updates.

Let the software push out those updates.

Get the updates.

Use the updates.

Just my experience.

[lmlassociatesinc]

All I see with the bill passing and us waiting for the updates, is more calls, and work that people wont pay us for. The joys of the job. Hopefully something is available by months end, id call that a win. 

[TheShyTaxLady]

Just saw this... 

New Exclusion of up to $10,200 of Unemployment Compensation

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

[SanBrunoTaxGuy]

In this case Lacerte will have to up date software.  Because if you force a number on line 8, the State tax returns will be wrong.  Like CA doesn't tax EDD anyways, so a negative on line 8 will create additional deduction.

[lmlassociatesinc]

"In this case Lacerte will have to up date software.  Because if you force a number on line 8, the State tax returns will be wrong."

Wouldn't all the programs be wrong if this is the case? seems like it would carry over to the state unless you did an override on the state which is what i was planning to do so I could get these returns out asap. Was debating that or file the state return with the full UI before making the federal only adjustement

[SanBrunoTaxGuy]

Then you'll have to keep track of all the EDD clients, which one filed CA and which one needs to update the Fed.  I don't know... sounds like record keeping hell.  Especially if you have to come back to this a few years later.  Might as well wait for the software to update save yourself to complication.

[lmlassociatesinc]

Probably, the sooner I can get people to stop asking me when I can file the better... Which is why its almost worth it to override. Ive had a handful of people just ask me to file, then later amend when the forms are available. 

[Just-Lisa-Now-]

for CA wed need to make an adjusting entry on the Form CA to add back that Line 8 adjustment so it didnt get excluded twice.

[Jdela80]

So will this help out people who barely went over the amount to quilify for the california stimulus 

[qbteachmt]

@Jdela80 

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte Tax Preparation programs, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Thanks.