The new relief package is supposed to not tax the first $10,000 of the 1099-G income. When will this be reflected in the software?

[SweetieJean]

Not just yet. See this:

IRS Statement - American Rescue Plan Act of 2021 | Internal Revenue Service

[DanaB27]

Yes, if your modified adjusted gross income (AGI) is less than $150,000, then you can exclude up to $10,200 of unemployment compensation paid in 2020 from your taxable income.

If you haven't filed then please sign up here for any updates.

If you have already filed then please do not amend your 2020 tax return, the IRS will soon provide taxpayers with additional guidance what to do. If you want to receive updates then please sign up here.

"For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance." Please see IRS statement American Rescue Plan Act of 2021 for details.