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Get your taxes done using TurboTax
The good news is that the reasoning for this tax reducing benefit was at least partially due to the folks in your situation (didn’t realize they could or should withhold the 10% of unemployment payments).
More importantly, why would anyone file their taxes before the deadline when they owe money to the IRS? (Sorry, @amt2020, you walked into that one).
When I first heard about the Senate adding this provision for reducing taxes on unemployment compensation, I thought (like a lot of folks) it was pertaining to the 2021 tax year (just like the child tax credit changes; added unemployment $300; etc.). Lo and behold, it’s the only provision (to my knowledge) for the 2020 tax year (unemployment basically 9 months, March through December). Now they extend unemployment benefits for another 9 months into 2021, yet no tax break. WTF?