1. Regarding the Unemployment Compensation Exclusion impact on Adjusted Gross Income, yes, you are correct. AGI will be reduced.
For more information including a worksheet with brief explanations, see: New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service
2. TurboTax will calculate the correct stimulus payment balance based on what is entered for the Recovery Rebate Credit. To do this in TurboTax, follow these steps:
- Go to the search box and enter stimulus. Click the Jump to link.
- Answer Yes.
- At the next screen, Let's double-check the amount you received, answer No to edit the first-round and second-round amounts.
- If no stimulus amount was received, enter 0. The amount received must be entered in each box. When finished, click Continue.
Keep in mind that even with the unemployment, the stimulus payments would be reduced but not eliminated for married filing jointly filers with adjusted gross income more than $150,000.
For more information, see:
First Stimulus Payment Calculation
Second Stimulus Payment Calculation
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