Your unemployment benefits are taxable and have to be reported on your tax return. But you do not include them on Schedule C.
You can enter your form 1099-G by following these steps:
- In TurboTax, open your tax return
- Click on Federal in the left-hand column, then on Income & Expenses on top of the screen
- Scroll down to All Income, locate the section Unemployment and click on Show more
- Click Start next to Unemployment and Paid Family Leave.
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