The American Relief Act allows for a reduction in taxable unemployment by $10,200 - how/where do I deduct it off my tax return before I submit it?

[mikalt45]

Simple question: Has TTax figured out how to deduct the $10,200 PRIOR to submitting returns?

[LenaH]

Yes, TurboTax has been updated to reflect the unemployment exclusion of up to $10,200.

You can confirm it was removed from your return by following the instructions below:

1. Click on Tax Tools.
2. Click on Tools.
3. Click View Tax Summary.
4. Click on Preview my 1040.
5. Scroll down to Schedule 1, Part 1. You will see your unemployment on Line 7 and the deduction of up to $10,200 on Line 8.

I have attached a picture below for additional guidance.

[VolvoGirl]

If you have unemployment you can exclude up to 10,200 if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

You don't have to do anything special to get it.  It is automatic.  Just enter your 1099G.  If the exclusion doesn't show up you may need to update the Desktop program.  If updating doesn't help or you are using the Online version then delete the 1099G and re enter it.