Is the unemployment tax break in effect for the 2021 year?

[DoninGA]

No.  The unemployment compensation exclusion was only for tax year 2020.

[bsku489346]

I entered NC unemployment in TurboTax Deluxe here in Jan 2022 for tax year 2021 and my Federal Tax Refund increased by a lot, almost like TT still thinks the tax break is in effect for 2021.  Any ideas where to go from here?

[Critter-3]

Ok ... adding more income can have effects on credits and doesn't mean the unemployment was not taxable.  Do not just look at the Refund-O-Meter ... review the actual form 1040.

You can peek at only  the Federal form 1040 and the summary of the state info by going here:

1) lower- Left side of the screen...click to the left side of the "Tax Tools" text selection.
2)  then select "Tools"
3) then select "View Tax Summary" from the pop-up
4) then back to the left-side and "Preview 1040"

Then hit the "Back" on the left side to get back to your tax entries.

To view your entire return using the online editions (including the state) before you file, you will need to pay for your online account.

To pay the TurboTax online account fees by credit card, without completing the 2019 return at this time, click on Tax Tools >>> Tools  and then Print Center.  Then click on Print, save or preview this year's return.  On the next page, to pay by credit card, click Continue.  On the next screen it will ask if you want Audit Defense, if you do not want this option just click on the Continue button.  The next screen will ask for all your credit card information so you can pay for the account.

[DoninGA]

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@bsku489346 wrote:

I entered NC unemployment in TurboTax Deluxe here in Jan 2022 for tax year 2021 and my Federal Tax Refund increased by a lot, almost like TT still thinks the tax break is in effect for 2021.  Any ideas where to go from here?

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The refund meter is not valid until you have entered all of your income, expenses, deductions and credits in the program.

You can always look at your federal tax return, Form 1040.  The unemployment compensation is entered as income on Line 7 of Schedule 1 which flows to the Form 1040 Line 9.

You can view your Form 1040 at any time using the online editions. Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.