Unemployment Comp

[SnazzyCPA]

I would really like to know why all of you are not screaming that Intuit did not post this information immediately as an alert in our tax software???? And instead, we have to search through their website to find how to get the information from the IRS???? Such incompetence!!!

March 12, 2021

The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov. The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.

The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.

[abctax55]

ummm SOME of us did....

[TaxGuyBill]

Intuit is in the business of selling tax software, not selling continuing education for tax professionals.

It is OUR job to know the tax laws and how they apply.  It is not Intuit's job to teach us.  They just need to keep us updated on what Intuit is doing in reaction to the changes.

And in case you have not seen how to deal with tax returns that have unemployment that have not been filed yet, this is from the IRS (but we should probably wait for guidance from the States):

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

[IntegrityAT]

Thanks for this. I came here to check with the community for feedback on this, and you helped me in 2 minutes flat. Cheers!

Does anyone expect the IRS to extend this year's filing season given their manpower issues and now these changes? 

[EDauerman]

Hi,

I do not believe Intuit is responsible for informing us of tax changes.  That said, Intuit did list on the website information that they are working with the IRS to update forms.  It was just not pushed out to the software.  I would have preferred to have found the new IRS site information from them.  There are IRS groups and also tax preparer facebook chats that you should consider joining a group. It is very helpful to read them (even if some are useless).  I use the group Accounting Firm Influencers.  They constantly yap about new updates and ask questions. Due your own diligence.