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tiff31
New Member

How do I make my unemployment wages non taxable

 
5 Replies
NCperson
Level 15

How do I make my unemployment wages non taxable

@tiff31 for federal taxes, they are taxable; why do you think they are not?

 

that stated, due to COVID, the federal government did exempt up to $10,200 of unemployment as being taxable (assuming other qualifications were met), but that was ONLY for 2020.  Turbo Tax handles that automatically.   In 2021 that did not apply - unemployment is taxable

 

at the state level, your state may or may not consider unemployment to be taxable.  Turbo Tax will handle this automatically.   

tiff31
New Member

How do I make my unemployment wages non taxable

I filed it that way, and they have held my return. I spoke with a tax advocate, and she told me I have to amend my return. She states I needed to remove my unemployment from my yearly wages. I am so confused at this point. 

xmasbaby0
Level 15

How do I make my unemployment wages non taxable

If you are preparing a 2021 tax return all of your unemployment 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.

 

If you are preparing a 2020 return, the software is programmed for the exclusion of federal tax on the first $10,200 of the unemployment you received in 2020.   You do not have to "do" anything except enter the unemployment and let the software do the calculations for you.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
VolvoGirl
Level 15

How do I make my unemployment wages non taxable

What year are you asking about?  2020 or 2021?  What line did your unemployment show up on?  Is it with Wages on line 1?  It should be on Schedule 1 line 7 which goes to 1040 line 8.

NCperson
Level 15

How do I make my unemployment wages non taxable

@tiff31 -I am going to make two assumptions

 

1) you are asking about amending your 2020 tax return

2) the unemployment was posted as 'wages' and not 'other income'

 

if that is the case, you'll need to amend your 2020 tax return and reduce the wages line by the amount of unemployment and then re-apply that same number into the unemployment income line. 

 

What should occur is that TT will reduce the taxable unemployment by up to $10,200 (assuming the other requirements are met, which Turbo Tax will figure out). 

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