![]() ![]() Is the IRS broken? Uh, anyone have an opinion? I bet they won't remember anymore than anyone else. (There is no way to override the UCE deduction!) EA12 As of Mathe update to allow you to exclude some or all of your unemployment benefits from taxation on your federal tax return is functional in the online version of TurboTax. If I want to file, I'll get a refund instead of a payment. ![]() But I can't justify it because my form clearly shows spouse income and no 1099-G for the spouse. Steps to Take When You’ve Been Laid Off and What Unemployment Means to Your Taxes. After I filed, the IRS ruled that community property states should get double the deduction. I don't see any reference to the extra refund. Here is the pain-point - I fetch my 2020 transcript from the IRS has my original filing including the -10,200 deduction. The federal tax law changed after thousands of us had already been allowed to E-file through TurboTax (stupid to change the rules in the middle of the game IMHO). This TurboTax Help allows you to sign up for updates from TurboTax about this feature of the tax code. Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment. When I open an amendment, before any changes - it shows I am due a refund that equates to the supplemental IRS refund received after my filing/refund. TurboTax does not yet support the 10,200 reduction of taxable unemployment insurance on your 2020 Federal 1040 tax return. I contrast it to my original filings PDF and it shows my AGI is off. When you apply for unemployment insurance benefits, you can choose to have 10 of your weekly benefit amount withheld for federal income taxes and 6 withheld. I open up the 2020 TT file and the schedule 1, line 8 is now -20400. Then in 2021, the IRS sent an unexpected refund - I had no idea why. When I filed, my estimated taxes were split between refund and future taxes. My original form (a PDF stored) shows a -10,200 on line 8, schedule 1 d I was unemployed, we file joint (30+ years), I had unearned unemployment income over 10200, and my spouse worked. I received unemployment compensation in 2020. I filed early February before Maryland passed a law that exempts unemployment compensation from taxation for 2020 unemployment compensation received. Unless you're entitled to a credit or deduction you didn’t claim on the 2020 tax return you already filed as described in Topic E, there's generally no need to file an amended return (Form 1040-X) to report the amount of unemployment compensation received in tax year 2020 to exclude on your 2020 tax return.TurboTax produces erroneous refund when amending 2020 Tax return because TT built-in includes a UCE deduction that is TWICE as much as when I originally filed. I need to refile the 2020 Maryland State tax return only. What if I already filed my 2020 tax return? Do I need to file a Form 1040-X to amend my tax return to report the exclusion? (updated March 23, 2022)Ī1. IRS phone assistors don't have additional information beyond what's available on IRS.gov. If a correction is made to any Recovery Rebate Credit, Child Tax Credit, Earned Income Tax Credit or Additional Child Tax Credit claimed on the return, the IRS will send taxpayers an per the IRS, do not call at this time - that is their instructions - it otherwise just makes the situation worseįor additional information about this exclusion, refer to the frequently asked questions on this page. This work does not typically require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund and in some cases this work could take 90 to 120 days. In the case of married individuals filing a joint Form 1040 or 1040-SR, this exclusion is up to 10,200 per spouse. Of these, 2 million returns require error correction or other special handling, and 8.2 million are paper returns waiting to be reviewed and processed. The American Rescue Plan Act of 2021 authorizes individual taxpayers to exclude up to 10,200 of unemployment compensation they received in tax year 2020 only. Did you try and review your transcript at IRS.GOV to see if there is anything in there that would give you a clue? did you efile or paper file and approx what date?Īs of May 27, 2022, we had 10.2 million unprocessed individual returns which include returns received before 2022, and new tax year 2021 returns. TurboTax and H&R Block customers are facing delays accounting for a 10,200 unemployment tax break.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |