MD waiver of state income taxes on Unemployment Insurance income

[jahjr]

Maryland passed and the governor signed the Maryland Tax Relief Act on 2/16/2021.  Part of this Act waives the tax burden on Unemployment Insurance income for 2020.  Where in my TurboTax Deluxe software would I make the subtraction for my Unemployment Insurance income?  Or do I need to wait for an update to the software?

[LenaH · Accepted solution]

Yes. The forms must be revised by the State of Maryland and then TurboTax will update the Maryland state return. 

Per the State of Maryland on 2/16/21, the Comptroller began accepting tax year 2020 returns for processing prior to the enactment of the RELIEF Act. Due to the emergency nature of this bill, both individual and business tax forms will be created or modified to account for its provisions. 

Once the tax forms are revised, your state tax return will reflect the RELIEF Act and your unemployment compensation will be nontaxable if you are eligible.

Under the provisions, the tax free unemployment waiver only appears to apply to single filers who reported under $75,000 or joint filers who reported under $150,000.