Can anyone get the $10,200 unemployment exclusion to work in ProSeries Basic?

[suptaxconslt1]

Is anyone able to get the $10,200 unemployment income exclusion to work? I'm not able to get it to work.

I did the update.

[Frustrated-in-IL]

Well, it was supposed to be available on March 18, 2021 in the afternoon.

I am guessing somewhere in the world it is still the afternoon of March 18, 2021.

[snoretaxman]

I put in the latest updates to ProSeries Basic but have not seen the proposed changes for my clients.  Any idea when the changes will go in?

[jeffmcpa2010]

following the IRS instructions issued a week ago has been working great for me.

[ctrentocpa]

I did an update the morning of the 18th and it appears that update did not include the unemployment exclusion. I've since tried to update and no updates are available, proseries has been slow to give information. I came in earlier this morning, 19th, still nothing. Were is proseries? Shouldn't they advise us as to what's going on?

[jnd2546]

Also just did the update check and "refresh update".  Still nothing.  Some status from PS would be good if its delayed or we're not seeing how its supposed to work.  

[taxiowa]

Proseries did have the query updated so you can lookup all unemployment clients.  Just drag client status next to it and you can see ones already accepted that will have to be dealt with.  I really doubt the IRS can simply change returns on their end.  What if a client has an amount due but of course has not paid it yet?  Does IRS give them refund of what they have not yet paid?

[Tax23]

following the IRS guidelines will also exclude the income on State which is not correct.  Are we still waiting for the program to get the change added?

[ljr]

No Pro series update this morning (19th) for the unemployment. I knew better than to hold my breath.

Hope we get some NYS guidance soon - what happens when they update the federal for the worksheet when it flows to the state returns?

[Suzanne_54]

How!  I tried but all my blocks wont let me put in the number.  Tells me to override.  If I put it at Unemployment amounts paid it works there.

So far my program has not updated.

[mohan]

I did not see any update from proseries yet (3/19 :8.00am)?

[suptaxconslt1]

I like your response, Intuit is a Global Company! lol

[suptaxconslt1]

I agree. Intuit should be providing more communication about the program update. Also, there does appear to be problems when the update is installed. I had to use a special procedure to install the update (Repair Updates). But it still did not work. Maybe we will get additional news today. I have not logged into the program yet.

Thanks for your response.

[suptaxconslt1]

My guess is that the IRS will send a corrected bill for the amount of tax due if the return has already been filed and 100% of the unemployment income was taxed on the return filed. But who knows?

[jeffmcpa2010]

Again

Follow the IRS instructions - the exemption does not go on the unemployment line.

Use the Other income worksheet and enter on line 24 UCE and a negative amount you want to exclude - that carries to Schedule 1 line 8

[suptaxconslt1]

I would like to know how the State of MI will be handling. Mi usually follows the Federal laws.

[suptaxconslt1]

So we have to do this manually? What about the loss of the exclusion at certain income level? Should we go back to preparing returns with paper and pencil like I did in 1977?

Thank you for your 2 replies.

[jeffmcpa2010 · Accepted solution]

I spent 5 minutes and created an excel spreadsheet to calculate the limits.

You can wait for the Intuit if you want to. I don't. Not when I can do it myself in a couple of minutes.

[suptaxconslt1]

IT NOW WORKS! I just did today's update and the unemployment exclusion is working! Back in Business!