Which state do you live in? You should be able to make an income adjustment on your state return removing the unemployment benefits. There also may be a question regarding the nature of the unemployment benefits on your state return. Could you provide your state of residency so we can check further?
The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020 taxes.
