I am unemployed and received a $600 or $300 dollar stimulus in addition to my unemployment compensation. Are these stimulus payment tax deducible. They were included in my 1099-G which I received from the state labor dept.
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The $600 and $300 per week Federal Pandemic Unemployment Compensation (FPUC) and Pandemic Unemployment Assistance (PUA) benefits are taxable on your federal return and are included on your 1099-G. Unemployment is tax free in some states.
The first $10,200 of unemployment is excluded from income tax under the American Rescue Plan Act of 2021. Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment.
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Can I just deduct the $10,200 unemployment deduction from the amount shown on my 1099-G or should I wait for Turbots update?
NOOOOO ... you must wait for the update.
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