I'm still showing that I owe taxes on my unemployment benefits for 2020 which were only $3,400. How do I fix this?

[gloriah5200]

Here is a link that explains to you how to enter the unemployment exclusion for "up to $10,200" of unemployment compensation received in 2020.

IRS instructions for excluding unemployment compensation

The exclusion should be reported separately from your unemployment compensation. See the updated instructions and the Unemployment Compensation Exclusion Worksheet to figure your exclusion and the amount to enter on Schedule 1, line 8.

When figuring the following deductions or exclusions from income, if you are asked to enter an amount from Schedule 1, line 7 enter the total amount of unemployment compensation reported on line 7 (unreduced by any exclusion amount) and if you are asked to enter an amount from Schedule 1, line 8, enter the amount from line 3 of the Unemployment Compensation Exclusion Worksheet. See the specific form or instructions for more information.

All versions of TurboTax have not yet been updated with this exclusion but should be soon.

[michaeljkosak]

when will turbo tax have updates for this Feb 2021 bill update? My Turbo Tax is telling me I have errors in this area and does not like it.

[NCperson]

did you download the latest version of the software? the unemployment section was updated this morning