How do we claim the deduction of $10200 from the unemployment income? I read that the first $10200 of the unemployment we received is not taxble. Turbo Tax has automatically computed it?
The software has been updated for the new tax law for unemployment. If you are working on your 2020 return now, enter your 1099G and the software will calculate how much -- if any-- of your unemployment is taxable.
Enter your 1099G in Federal>Wages & Income>Unemployment
If you filed your tax return BEFORE the law changed or before the software was updated, then you will want to read the following:
Here is why you do NOT amend your return for unemployment:
Please read this very recent news from the IRS: