Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment. The update should be released shortly and we thank you for your patience.
As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now 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.
If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here.