TurboTax (TT) has not yet updated the software to do that.
But, the IRS has issued instructions, so TT does know what to do, So, far we haven't heard when. There do not appear to be any form changes needed.
Any workaround involves some risk of error That said, if you really can't wait, this work arounds appears to put it in the right place, with the right wording:
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income
- On the next screen, click yes
- On the next screen, you'll get blanks to enter the amount and a description. For the amount enter with a minus sign: -10200. For description type UCE(10200). It will go on line 8 of Schedule 1 as a deduction (-).
That assumes you meet the income limits, you’re entitled to the full $10,200, and your spouse doesn’t also have unemployment. See the worksheet at: https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...
I’ve heard that the American Rescue Plan Act specifically says that the excluded unemployment income is NOT to be subtracted in calculating the following:
- Taxable Social Security
- Savings bond interest exclusion for education
- Employer-provided adoption benefits
- Deductible IRA contributions
- Student Loan Interest Deduction
- Tuition and Fees Deduction
- Passive activity loss limitation for rental real estate
If you're not sure that you're not affected by any of those, you should not use the workaround.
