Get your taxes done using TurboTax

You should just enter the unemployment benefits reported to you on Form 1099-G and TurboTax will automatically enter the reduction.   It is entered in the Unemployment section of the Wages & Income screen in TurboTax Deluxe.

You can preview your return and see the subtraction by following these steps:

1. While in your return, click Tax Tools > Tools (in the black bar on the left of your screen).
2. In the Tools Center window, click View Tax Summary.
3. In the black bar select Preview my 1040.

The adjustment will appear as "UCE" on line 8 of Schedule 1.  [See screenshot below.]

@katiebeck