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. This provision is retroactive only to tax year 2020(the taxes you file in 2021), helping millions of unemployed save on their taxes.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. The bill also made the first $10,200 of unemployment income tax-free for households with income less than $150,000. Under the American Rescue Plan signed into law on March 11, 2021, unemployment payments increased by $300 per week and the benefits were extended through September 6, 2021. The second provision also covered part-time workers, self-employed, and others that had fallen into a gray area for unemployment benefits. The first stimulus that was passed in March banned benefits for the mixed earner category of workers. Certain workers who had at least $5,000 per year in self-employment income, but were disqualified from receiving Pandemic Unemployment Assistance because they also had an employer could have been eligible for the additional $100 per week in unemployment benefits. If you earned your income both as an employee and a freelancer or a contractor (doing side gig work for example) you fall into this “mixed earners” category. The bill also afforded an additional $100 a week to earners who had a mix of income types. ![]() Under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, the second relief plan to expand unemployment, unemployment benefits were extended by issuing $300 a week for 11 weeks until March 14, 2021. Expanded unemployment benefits under the CARES Act included an additional $600 per week in unemployment until Jand allowed self-employed to file for unemployment. Expanded unemployment under the CARES Act created a new federal unemployment program that provided funding to the states called the Pandemic Unemployment Assistance (PUA), which gave unemployed additional unemployment benefits until Jand could also be applied for through the state where you worked.
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