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Unemployment Compensation Exclusion for 2021 tax returns

ewbcpa
Level 1

I just downloaded the 2021 ProSeries Basic Edition and noticed it is excluding unemployment compensation on line 8z of Schedule 1 of the 1040.  I'm not sure if that is correct.  Has anyone seen something from the IRS stating that you can exclude unemployment compensation in 2021?

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8 Comments 8
Terry53029
Level 13
Level 13

Have patience, wait until late December to check for issues with software, and don't transfer any clients until January. This first release is really like a trial run

qbteachmt
Level 15

"Has anyone seen something from the IRS stating that you can exclude unemployment compensation in 2021?"

 

They don't control this. Congress controls it, then the IRS figures out what it means, then they send it to the public and software providers.

 

Right now, you do realize your program is far from ready, right? Roughly two months, at a minimum.

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"Level Up" is a gaming function, not a real life function.
Just-Lisa-Now-
Level 15
Level 15

The first release of the new year program usually is the prior years version with a very few changes, each week a new update will come out updating the info to the new year.

Fingers crossed, we should have a fully working version by mid January.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
BobKamman
Level 15

I haven't downloaded it yet and probably won't until January.  Has anyone noticed any changes to formulas and computations from 2020?  Maybe the standard deduction, personal exemptions and tax brackets have been updated?  

I know it has to be submitted to IRS for approval.  Maybe an incomplete program at least gets them an early spot in line.  Maybe it helps IRS justify the work they do, pointing out all the mistakes.  Beats answering the phones.  

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sjrcpa
Level 15

"Beats answering the phones. "

Or processing the backlog of paper returns and responding to correspondence.


Ex-AllStar
lilian
Level 2

Exclusion of up to $10,200 of unemployment compensation is for tax year 2020 only,   This is from updated or reviewed as of March 8, 2022.

I have been excluding the unemployment compensation up to $10,200.  Shall I do amendment to the tax return that has been submitted already?

 

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Just-Lisa-Now-
Level 15
Level 15
Youve been excluding 10,200 of UI on 2021 returns?

You'll need to explain to the client that you've made a mistake, explain the possible consequences and give them the option to amend.

You didnt find it odd that the if the deduction was still available, and the software wasnt making that adjustment automatically, that maybe you were wrong?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
IRonMaN
Level 15

"You didnt find it odd that the if the deduction was still available, and the software wasnt making that adjustment automatically"

Maybe lilian thought it was another one of those items on the long list of ProSeries forms that were going to be released March 31st.


Ukraine - hang in there