On March 12, the agency said in a statement that it urges taxpayers to not file an amended tax return while it is reviewing implementation of the new tax laws, which Democrats pushed for to ease the burden on taxpayers. And given the changes to the tax system, the IRS is behind on processing nearly 7 million tax returns, causing delays in tax refunds. "It's literally a little under $4,000 that I can't get right now, which I could really use."Īccording to IRS data, around 53.9 million tax returns have been filed so far this year, which is almost 97% of all returns. The unemployment compensation received is on Line 7 of Schedule 1. The exclusion is reported on Schedule 1 Line 8 as a negative number. I’d post a screenshot of the email but can’t so here is the text: Were working around-the-clock to make updates to TurboTax based on the recently-enacted American Rescue Plan so you can file with confidence and get your maximum. Terry Algranati, a TurboTax customer based in New Jersey, told Insider that he still is waiting for the second two stimulus payments, and he can't complete his 2020 tax return because of IRS delays in accounting for the unemployment tax exemption in its software. The unemployment compensation exclusion was updated across all TurboTax platforms, online and desktop, on. Looks like Turbo Tax has 3/19 as the official update on when you can file and get the 10,200 provision handled. He also said he "loves the change to under $10,000," in reference to the stimulus tax exemption on unemployment benefits.Īt the same time, Jones said this is a very complex tax-filing season and that the Internal Revenue Service hasn't made any decisions yet on how it will actually execute the change in taxable unemployment benefits. Earlier this week, however, H&R Block CEO Jeff Jones told Insider that "unemployment is new for tens of millions of people" and he sees people making "mistakes" on their tax filings as a result. H&R Block did not immediately respond to Insider's request for comment. "We are implementing IRS guidance on unemployment income within TurboTax, and updates will be available in product this evening, March 18." "We're working around the clock to make updates to TurboTax based on the recently enacted American Rescue Plan so our customers can file with confidence and get their maximum refund," Ashley McMahon, a TurboTax spokeswoman, told Insider. According to CNBC, online tax preparers H&R Block and TurboTax haven't updated their software to account for the changes, with experts saying that taxpayers who are eligible for the tax break should wait to file. Taxpayers with income of less than $150,000 in 2020 are eligible for a tax exemption on the first $10,200 of unemployment benefits from the federal government. But H&R Block and TurboTax customers will have to wait for some of it. President Joe Biden signed a $1.9 trillion stimulus plan last week, and Americans are eager to receive their stimulus checks and get tax refunds. Account icon An icon in the shape of a person's head and shoulders.
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