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New Member
posted May 11, 2021 3:01:03 PM

I am filing my taxes and am curious how the federal unemployment deduction for the first 10200$ works. Is it already figured in or do I deduct it myself?

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3 Replies
Level 15
May 11, 2021 3:06:27 PM

The unemployment exclusion amount is already calculated in the TurboTax program.

Level 15
May 11, 2021 3:07:10 PM

Turbo Tax is updated for the 10,200 exemption.  You don't have to do anything special to get it.  It is automatic.  Just enter the full amount on your 1099G.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

 

If the exclusion doesn't show up and reduce your income then delete the 1099G and re enter it.

Level 15
May 11, 2021 3:07:54 PM

The software will take care of it automatically.   Do not try to do any fancy footwork or math yourself in regard to the unemployment.   TT's software will calculate how much--if any--of your unemployment is taxable

 

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.