Each state is different. Some states tax unemployment and some do not. Some states will follow the federal lead and exclude $10,200.00 and some states will not. However, the good news is that TurboTax will roll the federal adjustment into the states returns and it will be handled appropriately.
The IRS, and most states, consider unemployment payments as taxable income, which means that you have to pay tax on these payments and report them on your return. With this new law, if your household income is less than $150,000, the first $10,200 of unemployment per taxpayer, will be tax free on your federal tax return, but any amount you receive above that will be taxed.
We are actively working to update the states to account for these new federal changes.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
