IRS website for unemployment compensation FAQ's - https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs-topic-a-eligibility

You're eligible to exclude the unemployment compensation if it was received in 2020 and your modified adjusted gross income (AGI) is less than $150,000. The modified AGI for purposes of qualifying for this exclusion is your adjusted gross income for 2020 minus the total unemployment compensation you received. This threshold stays the same for all filing statuses, regardless of whether you're married and file a joint tax return (it doesn't double to $300,000).

To determine if you're under the $150,000 threshold and qualify for the exclusion, subtract all of the unemployment compensation reported on Schedule 1, Line 7, from the amount of your AGI reported on Line 11 of Form 1040, 1040-SR, or 1040-NR.

If you're eligible, you should exclude up to $10,200 of your unemployment compensation from income on your 2020 Form 1040, 1040-SR, or 1040-NR. This means up to $10,200 of unemployment compensation is not taxable on your 2020 tax return. Unemployment compensation amounts over $10,200 are still taxable.

If you're married, the exclusion can apply to you and a separate exclusion can apply to your spouse. If you and your spouse file a joint return and your joint modified AGI is less than $150,000, you should exclude up to $10,200 of your unemployment compensation and up to $10,200 of your spouse's unemployment compensation.

The exclusion is reported on Schedule 1 Line 8 as a negative number.  The unemployment compensation received is on Line 7 of Schedule 1.  The result flows to Form 1040 Line 8.

Super thankful for your reply.  I just have a couple more questions:

1.  I filed my return early in 2021.  Should I file an amended return?  

2.  When I updated TurboTax, the return amount on the new 1040 and the return amount on new TurboTax instruction coversheet no longer match.  The 1040 has the amount of the new refund.  However, the new TurboTax instruction coversheet still shows the old refund amount.  Does Technical Support need to assist me?  If so, how do I get a hold of them?  

Note:  The new TurboTax instruction coversheet "does" show the new adjusted gross income - so part of it updated; just not the refund amount.  

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@Debbie37 wrote:

Super thankful for your reply.  I just have a couple more questions:

 

1.  I filed my return early in 2021.  Should I file an amended return?  

2.  When I updated TurboTax, the return amount on the new 1040 and the return amount on new TurboTax instruction coversheet no longer match.  The 1040 has the amount of the new refund.  However, the new TurboTax instruction coversheet still shows the old refund amount.  Does Technical Support need to assist me?  If so, how do I get a hold of them?  

 

Note:  The new TurboTax instruction coversheet "does" show the new adjusted gross income - so part of it updated; just not the refund amount.  

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If you filed your 2020 federal tax return before March 26, 2021 the unemployment compensation exclusion was not included in the TurboTax software.

You do Not need to file an amended tax return.  The IRS is calculating the tax refund for the unemployment exclusion and you will receive a separate refund for that exclusion.  The IRS is sending the refunds in batches started in May and will continue throughout the summer months for those that are eligible.

I do not know why the Filing Instructions would have a different refund amount from the actual Form 1040.  This may just be a technical issue in the program.

You can contact TurboTax support and speak with an agent for this issue if you do desire.

Use this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/

Or -

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