Just to add to the overall confusion w.r.t 2020 Unemployment Income Tax Exemption of $10,200 - this was just published by Motley Fool today adding more to the confusion - we will have to see what TT actually implements as to whether or not a 2020 Tax filer's overall UI is excluded from Adjusted Gross Income or just the $10,200 as to determining the $150,000 threshold for Married Joint filers ?
- the Ascent > Personal Finance
The IRS Just Made More People Eligible for an Unemployment Benefit Tax Break
by Maurie Backman March 24, 2021
Excerpt >
Unemployment income won't count as income
Originally, any jobless benefits that were collected in 2020 were counted for income purposes. So, if someone earned $140,000 from a job and another $14,000 in unemployment that person would be over the $150,000 limit and wouldn't get the aforementioned tax exemption. Now, the IRS says that jobless workers don't have to count their unemployment benefits when calculating their 2020 income. And this change could help more people fall below the $150,000 threshold to enjoy tax-free treatment of $10,200 in unemployment benefits.
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