Dawn and other Employee Tax Experts, you can see that customers are getting upset at non-answers. Please test this process and then broadcast it instead:
Got to IRS.gov and search for ‘unemployment worksheet.’ You’ll find a page titled, “New Exclusion of up to $10,200 of Unemployment Compensation." I’d put the link here but this forum deletes all links. Print that worksheet, fill it out, and save it with your records.
When you have the result, follow the worksheet directions and open your Form 1040, Schedule 1 in your tax return. You’ll see that the Line 8 entry is ‘calculated,’ so you can’t change it. Double click on that number field, which will open a worksheet with the same Line 8. It’s calculated again, so double click on that number field again. That takes you to a Schedule 1, Line 8 worksheet in the TT program. Scroll to the bottom, Line 22, Other Taxable Income. Enter your exclusion as a negative, like ‘-10,200.’ Type “UCE” on that line to explain the entry. Hit Return to finish your entry.
Go back to your Form 1040 and you should now see the correct unemployment total in Line 8.
