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Are you sure it is for unemployment? That sounds like they may have denied the Recovery rebate credit on 1040 line 30.
The letter say I am not eligible for the unemployment income deduction which doesn’t make sense and I cannot get ahold of anyone to figure it out
TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.
(what the letters from the IRS mean)
I GOT A LETTER FROM THE IRS
https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs
If you cannot understand your letter:
TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support. At the page below, click on the blue button that says "Get Help from TurboTax Support". Then it will ask you what tax year is your letter. Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.
https://support.turbotax.intuit.com/irs-notice/audit-support/
I finally got a hold of the department of revenue and they told me I was not eligible for the state unemployment tax break
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