Now that TurboTax has finally updated the desktop downloaded version to include the Unemployment Compensation Exclusion, it will automatically correct your Federal taxes. However, be sure to check your state regulations and double check to see what TurboTax transferred to your state return.
As of the latest posting on NC Department of Revenue (03/19/2021), the UCE DOES NOT APPLY when calculating NC taxable income for tax year 2020. You must add back the UCE amount to the state return (Form D-400 Schedule S, Part A). Directions and worksheet for NC on how to do this can be found here:
https://files.nc.gov/ncdor/documents/files/2021-3-19-Impact-of-ARPA-on-2020-NC-Individual-Income-Tax...
This may change if the General Assembly decides to update the NC law to reference the new Internal Revenue Code. Until that happens, you must add the UCE back into your taxable income. If the General Assembly decides after you file your state taxes, an amended Form D-400 may be file to request a refund of any overpaid tax.
Each state is different, so double check before you file.
And then if/when/how soon TurboTax will update the state forms, your guess is as good as mine.
