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New Member
posted Apr 9, 2021 11:42:40 AM

Has the $10,000 unemployment tax free passed?

tax not applied to first $10,000 of unemployment

0 2 454
2 Replies
Level 15
Apr 9, 2021 11:45:25 AM

The software is updated for the unemployment tax law change.   Just enter your 1099G and the software will take care of the calculations for that.

 

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.

Level 15
Apr 9, 2021 11:45:42 AM

Yes and Turbo Tax has been updated.  It is automatic. Unless your AGI is over $150,000 then you don't qualify. Just enter the 1099G for the total unemployment you got.

 

The exclusion will be on Schedule 1 Line 8 as a negative number. Your unemployment compensation will be on Line 7 of Schedule 1. The result flows to Form 1040 Line 8.


If the exclusion is not showing up then delete the 1099G and re enter it.