We expect TurboTax to be updated sometime today, Friday, March 19, 2021, to include the new federal tax relief calculations to exclude $10,200 of unemployment compensation. Sometimes the software change happens at midnight so don't worry if you don't see it right away.
The adjustment to the taxable unemployment benefits will be on Schedule 1, line 8 of the 1040.
- If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here.
As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.
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