Just as follow up. I used the turbotax desktop version and I had to use the forms view to override and correct the amount so it would accurately reflect what the IRS sent me. I ended up calling Turbotax for an issue with downloading the desktop version and they agree that was right course of action.
For 1040X form, on line 8 for tax liability I could not edit it directly and so I subtracted subtract the (IRS unemployment refund amount) value from line 6 in that section. I also had to edit to add the IRS refund amount to Line A of the Overpayment Smart Sheet section for the refund to be correct.
