Is TT not processing the UCE tax credit of $10,200? I can't figure out how to make it work.

[dflamb3000]

The software will take the 1099-G amount but then there is no way to apply the $10,200 credit. Suggetions?

[AnnetteB6]

TurboTax is waiting on further guidance from the IRS as things are being updated to handle this recent change. 

Take a look at the following TurboTax article for more details and use the link in the article to register your email to be notified when everything is ready to go:

How do I claim the new unemployment benefits in TurboTax?

[Special Ed]

Here’s a work around since Intuit seems to be incompetent this time.

Got to IRS.gov and search for ‘unemployment worksheet.’  You’ll find a page titled, “New Exclusion of up to $10,200 of Unemployment Compensation."  I’d put the link here but this forum deletes all links.  Print that worksheet, fill it out, and save it with your records.

When you have the result, follow the worksheet directions and open your Form 1040, Schedule 1 in your tax return.  You’ll see that the Line 8 entry is ‘calculated,’ so you can’t change it.  Double click on that number field, which will open a worksheet with the same Line 8.  It’s calculated again, so double click on that number field again.  That takes you to a Schedule 1, Line 8 worksheet in the TT program.  Scroll to the bottom, Line 22, Other Taxable Income.  Enter your exclusion as a negative, like ‘-10,200.’  Type “UCE” on that line to explain the entry.  Hit Return to finish your entry.

Go back to your Form 1040 and you should now see the correct unemployment total in Line 8.