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I had a very similar question, my guy!!! Because 10,200 dollars of unemployment benefits are now tax free and because I wanted to receive my 600 dollar stimulus check, I quickly filled for my refund. I actually did end up owing money for the UI benefits though I started withholding 10 percent of my weekly benefits. Ultimately, it ate into my 600 dollar stimulus check causing me to receive a paltry sum of 395 dollars!
Will we have to turn around and send in an amended tax return for 2020 once the ink is dry on the ARP on Friday???
That is the million dollar question. Many folks in the same boat. I don't see how those of us who already filed won't have to file amendments, but of course, I am just speculating. Many have already paid and some of us have filed but not paid yet.
That is the million dollar question. Many folks in the same boat. I don't see how those of us who already filed won't have to file amendments, but of course, I am just speculating. Many have already paid and some of us have filed but not paid yet.
There's no way around filing amended returns IMHO. Unless household had nothing but UI income for 2020 taking that $10k or whatever off the table may or may not be a huge deal.
Those who had income besides UI will still need to crunch numbers to see what if anything will come back by filing an amended return.
Self-employed/independent contractors who earned income in 2020 still may owe self employment taxes on that money if earned enough to reach that threshold (which isn't very high to begin with).
Depending upon how much state UI people received, topped up with extra $600 or $300, plus the LWA of $300 x whatever weeks, people may have received around $20k in total UI related benefits for 2020.
My 2 daughters barely worked due to pandemic and collecting unemployment most of the year. They had very little wages other than that.
WHen I Did ones taxes, she owed $4K on $16,000 unemployment. Im hoping that gets cut down.
THe other - I never got her PUA (Mass) 1099g, so I ordered it, and am waiting for it. Im thinking she got paid more UI than my first daughter, and Im hoping the $10,200 comes off the books for her too,
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Im also hoping I dont have to file an extension, but Im thinking we will. I doubt Turbotax will be setup for this...
There is just so much tax stuff in this new bill, even besides the UE break. You also don't have to pay back overpaid premium health care credits for those with marketplace coverage. For example, I was going to have to pay back $ 375.00 in PTC (on top of regular tax liabilities). So that will need to be amended now, as well, so I can exclude it. Then there are the new child credit amounts...
I agree with you that there is probably no way around amended returns.
My 2 daughters barely worked due to pandemic and collecting unemployment most of the year. They had very little wages other than that.
WHen I Did ones taxes, she owed $4K on $16,000 unemployment. Im hoping that gets cut down.
THe other - I never got her PUA (Mass) 1099g, so I ordered it, and am waiting for it. Im thinking she got paid more UI than my first daughter, and Im hoping the $10,200 comes off the books for her too,
'
Im also hoping I dont have to file an extension, but Im thinking we will. I doubt Turbotax will be setup for this...
4K on 16K seems too high, IMO. I would look at that return again and rerun the numbers.
She got a 9K stipend from school for doing TA work and 16K for unemployment. (I forgot about the stipend when typing before)
Turbotax has her owing $2,600 federal and $600 state.
This makes more sense. Did she take the $ 250.00 educator credit? I am not sure the specifics of it (such as hours needed), but hey, every little bit helps!
This makes more sense. Did she take the $ 250.00 educator credit? I am not sure the specifics of it (such as hours needed), but hey, every little bit helps!
WE didnt take that, but as I looked at it - its K-12, and she was a TA for undergrad college kids (shes a grad student now)
As of today Turbo tax software isn’t updated to calculate the $10200 tax exempt for this years unemployment.
Although, the IRS did issue guidance how to correctly file on the 1040.
You can EFILE your tax return on free fillable forms.
Along with the 1040, you’ll need to attach a schedule 1.
Line 7 of the schedule 1 will be the amount of UI, and line 8 will be -10200 (for filing single).
As of today Turbo tax software isn’t updated to calculate the $10200 tax exempt for this years unemployment.
Although, the IRS did issue guidance how to correctly file on the 1040.
You can EFILE your tax return on free fillable forms.
Along with the 1040, you’ll need to attach a schedule 1.
Line 7 of the schedule 1 will be the amount of UI, and line 8 will be -10200 (for filing single).
Turbo tax and HR Block software will get updates for this new IRS guidance?
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