Please enter your federal income tax withheld in Box 4 when entering your 1099-G.
You can follow these steps to enter your unemployment:
- Open or continue your tax return in TurboTax.
- Search for unemployment compensation and select the Jump to link.
- On the Did you receive unemployment or paid family leave benefits in 2020? screen, answer Yes.
- Follow the instructions to enter your unemployment.
As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020. The IRS will provide additional guidance about what you need to do to take advantage of this relief if you already filed your 2020 tax return.
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