Unemployment compensation is taxable income on a 2021 tax return. You enter the compensation reported on the Form 1099-G on your federal tax return.
To enter unemployment compensation
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Under Unemployment
- On Unemployment and Paid Family Leave, click the start or update button
Or enter unemployment in the Search box located in the upper right of the program screen. Click on Jump to unemployment
