Tax Year 2021 Unemployment Tax Excemption

[stevek]

When will TurboTax desktop (home and business edition) support the exemption from taxes of unemployment compensation for tax year 2021? https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation.

Thanks, Steve

[xmasbaby0]

Sorry---look at the date on that IRS article.  That was for last year.    For 2020 tax returns ONLY Congress made the first $10,200 of unemployment tax free on your federal return.   Congress did not extend that for 2021 returns.

 For your 2021 tax return, all of your unemployment is taxable on a federal return, and maybe on your state return--depending on your state tax laws.