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Your unemployment 1099G has to be entered. It is taxable income.
UNEMPLOYMENT COMPENSATION
Unemployment compensation is taxable on your federal return.
You will have to enter a 1099G that is issued by your state.
Some states will mail out the 1099G. Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.
Enter your 1099G in Federal>Wages & Income>Unemployment
Go through the screens very carefully, making sure to enter any federal/state tax you had withheld from the unemployment.
STATES THAT TAX UNEMPLOYMENT BENEFITS
AZ, AR, CO, CT,, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, ME, MD, MI, MN, MS, MO, NB, NM, NY,NC, ND, OH, OK, OR, RI, SC, UT, VT, WV, WI
STATES THAT DO NOT TAX UNEMPLOYMENT BENEFITS on the state return
AK, CA, DE, FL, MT, NH, NJ, NV ,PA, SD, TN, TX, VA, WA, WY
This is wrong. Maryland temporarily repealed state income tax on unemployment. Here is the release from Gov. Hogan's office.
You are correct, MD has suspended taxing unemployment. However the unemployment is still federally taxable and must be entered as @xmasbaby mentions.
Update: With the new stimulus law nearing signature there is language therein that has a tax break on the first $10,200 of unemployment benefits received in 2020. Once the bill becomes law the IRS will issue implementation guidance on this and other provisions of this new tax law.
Following that IRS guidance, tax preparation software will be updated with the changes and once the software changes are approved by the IRS, they will be pushed to customers.
There is no projection on when all these steps will be completed yet.
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