PRO SERIES NEW UNEMPLOYMENT EXCLSUION

[robertsokoloff]

Anyone have any idea when pro series will have the change in unemployment updated  ? 

[qbteachmt]

https://proconnect.intuit.com/community/proseries-tax/discussion/02/221

[abctax55]

From Intuit:

While we await President Biden's signature on the American Rescue Plan, we are monitoring the situation very closely and will provide updates as they are available. For the latest and greatest, check out our COVID-19 Resource Center, our Tax Pro Center post about the American Rescue Plan, or the Tax Law and News on the Tax Pro Center. Of course we will also post any relevant product updates here in the Accountants Community under the News & Updates sections in the community.

[Taxed preparer 66]

When the president signs the bill scheduled for Friday March 12 2021. The exclusion is for benefits paid in 2021 as far as I can see, There is no retroactive provisions for federal unemployment benefits to be tax free for those received in 2020. I am watching this closely as I received $20K in federal benefits for 2020 none of which had federal taxes withheld. OUCH! If you can document the exclusion for 2020 benefits please give us the reference, I will file an amendment to my 2020 taxes immediately.

[abctax55]

Google the text of the bill; it IS for 2020

And amended returns can't be filed until 3.18.21

[robertsokoloff]

Per Journal of Accountancy article yesterday  

Unemployment benefits

The act makes the first $10,200 in unemployment benefits tax-free in 2020 for taxpayers making less than $150,000 per year.

[abctax55]

@Taxed preparer 66 

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[Taxed preparer 66]

Thank you. Found the article in the Journal of Accountancy by Ken Tysiac and Alistair M. Nevius, J.D. dated March 6, 2021. Senate passes amended $1.9 trillion COVID-19 stimulus bill. We will hope the House includes this provision and it get signed into law. To all those that reminded me the form 1040X is not available until March 16, 2021 thank you as well. Will be interesting to see how the IRS responds to this. Looks like the 1040X will keep us busy for a while.  

[Taxed preparer 66]

You should never assume Former Chump..umm...AllStar. And yes "The Game of Life is hard to play" I have had 72 years of experience at it. 

[abctax55]

You used phases like "my" return etc - it's usually indicative of a DIYer rather than a tax professional. We get a LOT of those here, because Intuit refuses to lock the barn door. And since we make our living based on the tax knowledge we've accumulated it is a bit irritating that so many TurbohTax users are allowed to solicit free advice. Congrats on being 72.

[SFSTaxPrep]

President Biden signed it 5 hours ago.  Any update on at least a timeframe of when the software will be updated?

My understanding is that first the IRS has to set their programming so the E-File system accepts it, then Intuit and the other providers have to reprogram their software to apply the law and any resulting consequences.

I'm guessing a Minimum of 1 Week, but more likely, 10 days, so perhaps around Tuesday March 23.

It's OK, not like I have any lower income clients who received Unemployment Benefits last year.  I guess the IRS's little game of "No Way, We Won't Delay," comes to an end next week.  Otherwise I foresee plenty of chaos over the next 5 weeks.