Even though the IRS has stated this will be a negative entry on Sch 1 line 8 the programming on the side of tax return prep programs and the IRS are not yet ready to handle this situation ... patience will be needed while they all get this updated. The IRS even says to NOT amend any returns yet ... they may make the corrections themselves so everyone take a deep breath.
Per the IRS .... Unemployment extension
The Plan also provides a $300 federal increase to weekly unemployment payments and extends two key pandemic unemployment benefits programs through September 6, 2021.
The first $10,200 of unemployment payments are now tax-free for households with an annual income under $150,000.
If you’ve already filed your 2020 return, hang tight. The IRS will provide guidance on how you can claim these additional benefits soon.
