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.
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?
@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?
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.