Unfortunately, IRS is still making the determination and changes to the handling of the unemployment exemption in the tax code, in their systems, and for the software developers.
If you haven't filed you should hold off. The software updates should be coming out soon.
The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of economic impact payments, including the unemployment benefit will be forthcoming. A change came out on irs.gov yesterday.
The IRS strongly urges taxpayers not to file amended returns related to the new legislative provisions or take other unnecessary steps at this time. The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable.
TurboTax is developing the software required to process all of the new conditions.
