Update: 6/10/21
Maryland is now able to accept returns impacted by Reject Codes Form 502-01730-020 and Form 502-01730-012. Impacted returns can now be resubmitted.
If any Maryland returns received the below reject codes yesterday (4/15) and this morning prior to 7am ET, they can be resubmitted at this time. This relates to MD EIC updates and the latest schema was not released into production until this mornings deployment.
Issued on May 26th, South Carolina has adopted the Federal suspension of tax on a portion of unemployment compensation for tax year 2020. The latest updates are already live in our applications as of 7:00am ET, June 1st. To review the full policy advisory from South Carolina, please click here. For any SC taxpayer that can now take advantage of this recently adopted legislation, South Carolina will require an amended SC return be prepared and filed.
Software vendors received the below message from CA regarding a delay in acks from returns filed on or around May 5th, 2021. CA acknowledgements should start to come in as CA processes their backlog.
“The issues caused by yesterday’s power outage have been resolved. SWIFT is now up and running and we are able to receive e-filed returns. Again, we apologize for the inconvenience.”
Software vendors received the below message from MA.
“Please be advised that on Monday, May 3, we had a systemic issue which did not allow us to acknowledge some returns (all tax types). This issue is being fixed and the missing acknowledgements are scheduled to be sent out next Tuesday, May 11.“
ALDOR Announces Relief for Taxpayers Affected by Severe Weather in March
AL Department of Revenue released the above statement for Taxpayers impacted by the severe weather in March.
Message from Ohio sent to all software providers.
“We had a population of 200 submissions from April 14, 2021 that were processed but unfortunately acknowledgements were not sent. Our tech team has corrected the issue and those missing acknowledgements are scheduled to go out tonight.“
Under the American Rescue Plan enacted on March 11, 2021, unemployment compensation up to $10,200 paid in 2020 is excluded from federal adjusted gross income. This exclusion applies for those with a federal adjusted gross income which is less than $150,000. Utah law generally conforms to the federal treatment of unemployment compensation. If you received unemployment compensation in Utah during 2020 please do the following:
If you have not yet filed your federal and Utah returns: First, ensure you have the most updated forms and instructions and file your returns as normal. The unemployment compensation that is excluded for federal tax purposes will automatically be excluded for Utah tax purposes.
If you have already filed your federal and Utah returns: Do not file an amended Utah return to exclude any unemployment compensation at this time. The Utah State Tax Commission is exploring options to obtain the necessary information directly from the Internal Revenue Service to adjust your return and process a refund automatically. If it becomes necessary for you to take any action related to the exclusion of your unemployment compensation, additional instruction will be provided here after August 1, 2021.
The American Rescue Plan Act of 2021 excludes from income the first $10,200 in unemployment compensation received in 2020 per taxpayer on their 2020 tax return. The new provision applies to taxpayers with an AGI of less than $150,000. The IRS has recently released a new unemployment compensation exclusion worksheet and updated instructions on how to file 2020 tax returns that contain unemployment income.
The exclusion amount calculated on the worksheet flows back to Schedule 1 (Form 1040), line 8. UCE will print on the line next to line 8 identifying the amount as the unemployment compensation exclusion.
Returns filed prior to the release of the Federal Update in TaxSlayer Pro will automatically re-calculate to exclude the non-taxable portion of unemployment income. This is important – Please make sure you have a copy of the originally filed federal and state return before you open these returns. The original copy of the federal tax return and the state return will be needed to plug in the original column on the Amended federal and state forms once the IRS gives guidance on if or when an amended return needs to be filed. The original return can be accessed from Client List by using the Tools dropdown to access “Client Status”. Scroll down the Client Status page to locate the Federal transmission. The left print icon, when clicked, will open a new window that includes the original Federal transmission.