![]() ![]() While entering this income in TurboTax, youll be asked if you had any income withheld for tax purposes. The IRS strongly urges taxpayers not to file amended returns related to the new legislative provisions or take other unnecessary steps at this time. Unemployment income is reported on Form 1099-G. If you've already filed your return, the IRS will recalculate your taxes, adjust your account accordingly, and send any refund amount directly to you. However, if you owe more than that I suggest you do make a payment. Updated: / 12:46 PM MDT WASHINGTON (NEXSTAR) The American Rescue Plan Act of 2021 includes new guidance that allows people to waive tax liability on up to 10,200 of unemployment. Theres also a backlog in IRS tax-refund processing, which led to a one-month deadline extension. Banks and tax preparers have struggled to deliver stimulus checks and refunds, angering customers. Please review this thread regarding the update to the 2021 American Rescue plan in TurboTax. The IRS just released the following guidance regarding unemployment. The update is currently being rolled out and should not be much longer. The recent interest rate hikes, the most aggressive since the 1980s economic crisis, aim to slow spending that has been a factor in rising inflation. The information on your 1099-G must match your tax return or the IRS will flag it. If you owe under $1,000 the unemployment adjustment should cover that expense. TurboTax and H&R Block customers are facing delays accounting for a 10,200 unemployment tax break. 3 min read Sources The Federal Reserve approved the 11th consecutive interest rate hike in a little over a year, increasing rates to the highest level in 22 years. Updates to the desktop programs are still pending. The IRS announced that people who are eligible for the unemployment tax deduction and have already filed their 2020 taxes do not need to file an amended return. The TurboTax online programs have been updated to reflect the 10,200 federal tax exemption for unemployment compensation. Unemployment can be scary and overwhelming, but you dont need to navigate it alone. Unemployment Stimulus: Am I Eligible for the New Unemployment Income Relief? Unemployment Center Where your tax and money questions get answered. ![]() ![]() This is then carried over and posted to your tax return (1040) on line 8. download available tax forms including current information on your latest tax form and year to date activity updates. Then on line 8 there is a UCE (Unemployment Compensation Exclusion) of -$10,200. It is first recorded on Schedule 1 as Unemployment Compensation on line 7. ![]()
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