but this site does not appear to accommodate this exclusion. How do I proceed?
See this TurboTax support FAQ for information for the unemployment compensation exclusion - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-claim-the-new-unemployment-benefits-in-tu...
Also see this IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021
You are among millions who have now been affected by a mid-tax season change in the tax law. Patience will be necessary.
TurboTax will update the software for the unemployment but there is no timeline yet.
If you have not e-filed yet—-wait. And if you already e-filed and want to amend for this—WAIT.
Please read this very recent news from the IRS:
I just found these updated, detailed instructions from IRS for calculating and reporting the Unemployment Compensation Exclusion: https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...
Hopefully, TTax has seen this also and will provide additional information for entering in TTax to the community. Also, be aware that your state may not mirror the UCE for State income tax, so you may need to adjust you state return if you are filing one.
TurboTax is working hard to have this updated as soon as possible. Here is some information about this and links to be notified when the forms are ready.
If you have already filed your taxes:
As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020. The IRS will provide additional guidance about what you need to do to take advantage of this relief if you already filed your 2020 tax return.
If you’d like to be updated when the information becomes available, please sign up here.
If you have not yet filed your taxes:
As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020. Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment.
If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here.