There have been several changes that have happened during the actual tax season this year. It has created a lot of differences with how items are reported for your federal return versus your state returns. Many states conform to the federal changes but others do not. Initially, the changes dealt with the treatment and taxation of retirement distributions due to Covid-19 relief.
However, the latest changes involve unemployment income. The latest release under the American Rescue Plan allows for the first $10,200 of unemployment income to be exempt from taxation for federal purposes.
IRS Statement on American Rescue Plan
The updates have been made for the federal returns using the online program. The updates are being implemented for the desktop software. The updates are currently being implemented for all of the state regardless of whether you are using the online or desktop program.
I recommend signing up for updates using the link below to be notified.
Unemployment update for desktop
Please see the following link as well for updated information as it is released.
How will the 3rd stimulus affect me
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