Unemployment Tax Exemption

[JulJenson]

If I had federal taxes deducted from my unemployment, and now $10,200 is exempt as income, is TurboTax updated to get the money back?

[DoninGA]

Taxes withheld from the unemployment compensation have been entered on our federal tax return Form 1040 on Line 25b as a tax payment.  If the total of all your tax payments are greater than your total tax liability then you will receive a federal tax refund for the overpayment.

[RayW7]

I agree with @DonigGA... 

As soon as the IRS issues final instructions on how to report newly-exempt 2020 unemployment payments, TurboTax will make the necessary updates to its programs. Until those changes are made, you have two options:

1. File now and...there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.

2. File after IRS instructions are released and the programs have been updated.

From How will the third stimulus impact me?:

"We’re working hard to keep TurboTax up to date with the latest tax changes based on instructions we receive from the IRS. Check back soon to add your unemployment income and file your return."