I did my taxes yesterday. Does Turbotax automatically calculate the unemployment tax break into my 2020 taxes? Or does the IRS do this afterwards?

[martinbiscarro]

Yesterday was 6/8/21

[DoninGA]

TurboTax calculates the unemployment compensation exclusion.

The exclusion is reported on Schedule 1 Line 8 as a negative number.  The unemployment compensation received is on Line 7 of Schedule 1.  The result flows to Form 1040 Line 8.

[martinbiscarro]

So did I receive the tax break in my refund? Or will it come separately from the IRS? I see the negative number you are talking about but I paid over $700 in taxes on my unemployment benefits in 2020. Should that be in my refund? 

[DoninGA]

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@martinbiscarro wrote:

So did I receive the tax break in my refund? Or will it come separately from the IRS? I see the negative number you are talking about but I paid over $700 in taxes on my unemployment benefits in 2020. Should that be in my refund? 

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Taxes you paid for the unemployment are entered on the tax return as a tax payment.  Just like from a W-2.  The taxes paid will be included in the federal tax refund or will reduce the federal taxes owed, if you owed taxes on the federal tax return.

[martinbiscarro]

Thank you