I reached out to the IRS and was told I needed to fill out a 1040X tax return. This is because I claimed unemployed as earned income. How do I fill this ?

[xmasbaby0]

If you received a 1099G for unemployment benefits it must be entered here:

Enter your 1099G in Federal>Wages & Income>Unemployment

Go through the screens very carefully, making sure  to enter any federal/state tax you had withheld from the unemployment.

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-report-a-1099-g-for-unemploymen...

Wait until your original return has been fully processed before you amend, and make sure you have saved a pdf of the original return before you amend. (If you do not save it as a pdf, the amended return will overwrite the original, and the original will be lost forever)

See this TurboTax support FAQ for amending a tax return -

CURRENT YEAR

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-federal-tax-return-curr...

Do not expect quick results from amending. It can take four months or more for the IRS to process an amended return.  

You can watch for information here:

https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1

[VolvoGirl]

OK we will need to know how you entered the unemployment.  It should be on a 1099G.  What line did it show up on your tax return?  Did you enter it like a W2?  

Did the IRS send you a letter about it?  Why did you reach out to the IRS?  Did you call them?  

Be sure to save a copy of your original return before you start the amended return. The Amended return will overwrite the original return.  How to Amend the current year
https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-federal-tax-return-curr...

Then to fix it you first delete the unemployment you entered in the wrong place.  Then Enter a 1099G for unemployment under

Federal on left

Wages & Income at top

Unemployment - Click the Start or Update Button

Your unemployment compensation will be on Schedule 1 line 7 and  flows to Form 1040 Line 8.  You get credit for any withholding on 1040 line 25b.