You will have to amend your return to get a refund of tax paid. Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment.
As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for a person with an annual modified adjusted gross income of less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.
If you would like to receive progress status updates, please sign up here.
IRS Form 1040-X (amend your return) will be ready on March 25, 2021. Sign up for email notification and we'll let you know when the most current form is available.
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