Unemployment - Software Update Broadcast Released 03.15.2021
Tomorrow morning, a software update for the new Unemployment Compensation Exclusion Worksheet will be available, allowing you to file returns with this new exclusion.
How It Works
You will continue to enter unemployment compensation as you have been. The software will produce a worksheet to calculate the exclusion amount, and that amount will carry to Form 1040, Schedule 1, Line 8 in accordance with IRS instructions.
Returns Previously Filed with Unemployment Compensation
The IRS strongly recommends that tax preparers and taxpayers should not yet file amended returns for the Unemployment Exclusion. Official IRS guidance is forthcoming.
State Conformity
We are actively working with state tax agencies to determine how states plan to address the federal tax law changes brought about by the American Rescue Plan Act of 2021. For state conformity updates, please see KB article 17148. We will update this article as we receive information from the states.
Advance Premium Tax Credit
Please stay tuned for information about the Advance Premium Tax Credit (APTC) — the IRS's first priority was the Unemployment Exclusion change and we expect more information on the APTC in the near future.
Source:
https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation
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