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New Member
posted Mar 19, 2021 12:57:57 AM

Has the Covid unemployment tax break (officially called Unemployment Compensation Exclusion, up to $10,200, I believe) been implemented in TurboTax yet?

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2 Replies
Level 15
Mar 19, 2021 9:14:30 AM

Not yet.  Once the changes have ben programmed and tested, the IRS (and states as applicable) must approve them.

New Member
Mar 22, 2021 10:55:38 AM

Just checked today, March 22, and the unemployment compensation exclusion is now incorporated, in the online version at least. If your AGI is under $150,000, up to $10,200 of 2020 unemployment insurance income is now free of federal tax. You have to declare it as income but it gets offset with a credit/adjustment which will appear on Schedule 1.