Does stimulus bill have income limits for unemployment tax credit?

Forum|Forum|5 years ago
March 7, 2021
2 replies
10 views

tax relief on 10,200$ of unemployment

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DMarkM1

Level 15

Yes, there appears to be an income limit on the tax break for unemployment benefits. The latest version of the bill shows a tax break on the first $10,200 of employment for household incomes under $150,000.

NOTE: This is still only a "bill". It has to go back to the House of Representatives and if no changes there, then to the President to sign into law.

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Wally1600

Level 3

When will Turbo Tax be updated to handle the new 10,200 Unemployment Income credit to be entered on Line 8 Schedule 1. I am able to enter the -10200 amount however the description shows as Gambling Winnings. Can I override that to UCE as per IRS Instructions? This legislation has now been passed.

JotikaT2

Employee Tax Expert

It is still being determined at this point by the IRS. Accordingly the newly passed legislation, the first $10,200 on unemployment earned in 2020 would be considered nontaxable if your household income is less than $150,000.

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Once the IRS issues some guidance, TurboTax will be able to update their software accordingly.

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