How does TurboTax Premiere determine the amount of unemployment benefits to exclude from AGI? I ask because I thought I would receive the full amount of the exclusion ($10,200). However, the amount of the exclusion is reduced by the exact amount of income reported on a 1099-NEC form ($1,450). This means only $8,750 is excluded from AGI. Which line(s) on the 1040 tax form can I review to verify the actual amount of the exclusion?
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As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments may now be tax-free for a person with an annual modified adjusted gross income of less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.
as of 3/26 the desktop versions are working with regard to the UC and I was under the impression that the updated online versions were available even sooner. a 1099-NEC should have no effect on the excludable portion of UC. the rule Is if Modified adjusted Gross income is over $150,000 (figure without the UC) then the entire UC is taxable. if less the exclusion is the lesser of the actual UC or $10,200. special rules apply on a joint return if both spouses received UC.
see schedule 1 line 8 the exclusion will be indicated with the letters UCE on the line
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