The unemployment compensation exclusion was updated across all TurboTax platforms, online and desktop, on 03/26/2021.

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.

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

See this TurboTax support FAQ for state unemployment taxes - https://ttlc.intuit.com/community/internal-revenue-service/help/how-is-my-state-taxing-unemployment-...

Minnesota (MN)

Does Minnesota also have a limit of 10,200 to be taxed? My numbers changed for federal, but not for state when I re-did them.

@meganvera

There’s no exclusion for unemployment benefits on your Minnesota return.    

The unemployment compensation amount you were able to exclude from your federal return is included (as an addition to income) on your Minnesota return, so there's no change.

When I update MN in Turbo Tax my refund/amount due amount does not change. MN has updated their software and is recalculating individual returns to adjust the refunds. Why isn't Turbo Tax showing this change. August/September 2021 for tax year 2020.

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@kathie-zettervall wrote:

When I update MN in Turbo Tax my refund/amount due amount does not change. MN has updated their software and is recalculating individual returns to adjust the refunds. Why isn't Turbo Tax showing this change. August/September 2021 for tax year 2020.

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If you filed the MN return prior to the state tax code changes the state is adjusting your tax return and refund.  Did you receive a letter from the state concerning your tax return and the unemployment compensation reporting changes?

Go to this MN state website - https://www.revenue.state.mn.us/tax-law-changes

Tax Year 2020

If you filed a 2020 income tax return that included unemployment compensation or PPP loan forgiveness, we'll either adjust the return or ask you to amend it.  

• If we can adjust your return: We'll send you a letter describing what we changed and any refund you may receive as a result. We're committed to adjusting as many returns as we can. 

• If you need to amend (due only to these law changes): You should have received a letter from us in August. If you did not receive a letter, we will adjust your return and notify you when we're done.

I called MN Revenue. Using my SSN, they see that I have unemployment and my return should be getting a review by the Rev Dept. With over 540,000 returns to review, they are doing 10,000 reviews a week and trying up those numbers to 50,000 a week by the end of October. At that rate, they should get through them in no less than 3 months from now. MN Rev guy was surprised Turbo Tax software is not changing my refund numbers.