It was reported on here https://www.cnbc.com/2021/03/23/10200-unemployment-tax-break-irs-makes-more-people-eligible.html and https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation.
I logged on today and saw the unemployment compensation is no longer contributing towards my AGI so now I qualify for the deduction. Before it was pushing me over the limit when combined with the COVID-19 401k withdrawal. I was paying over $2000 more when I logged in yesterday and another user confirmed the change was made by TurboTax today for the online edition.
This is probably the calculation for the new one which no longer counts it as AGI.
Unemployment Compensation Exclusion Worksheet – Schedule 1, Line 8
- If you are filing Form 1040 or 1040-SR, enter the total of lines 1 through 7 of Form 1040 or 1040-SR. If you are filing Form 1040-NR, enter the total of lines 1a, 1b, and lines 2 through 7.
- Enter the amount from Schedule 1, lines 1 through 6. Don't include any amount of unemployment compensation from Schedule 1, line 7 on this line.
