![]() "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. 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. 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. ![]() The Treasury Department says it has sent out 90 million economic impact payments totaling $242 billion since President Joe Biden signed a $1.9 trillion pandemic relief plan last week.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. H&R Block is reportedly awaiting further guidance from the IRS and did not provide a timeline. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation.”Ī TurboTax spokeswoman told CNBC they expect to have their software updated by Thursday evening. Amounts over $10,200 for each individual are still taxable. If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. “If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200. Here is the provision as described by the IRS: ![]() According to CNBC, both TurboTax and H&R Block are still working to update their tax software to include the new exemption. ![]() 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 compensation in 2020. ![]()
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