Apparently TT has not updated the forms yet but in order to get an idea how my taxes would be affected by Congress waiving the first $10,200 in unemployment income, I adjusted form 1099-G "Certain Government Payments" box 1, Unemployment Compensation by subtracting out $10,200. In my case, box 1 worked out to
16,600 - 10,200 = 6,400. My tax liability went from $4,022 down to just $502. You can also adjust this in the step-by-step method under Federal Taxes/Wages & Income/Unemployment. I will correct 1099-G box 1 when TT updates the forms before filing.
This is just a method to ESTIMATE my own tax situation considering the Covid Relief bill implications; I am not offering this as tax advice.
