Pandemic Unemployment Assistance

[southerngirlz24]

Pennsylvania sent me a PUA 1099-G unemployment form stating i received $2600 last year.  I live in Texas.  Do i have to include this on my federal taxes or will this be apart of the money that can be excluded in the $10,200 of unemployment can be excluded.  Not sure if i have to file a PA state return also.  PA is not listed on any of my W2s, but i did work there.

[ErnieS0]

Pennsylvania Pandemic Unemployment Assistance (PUA) is considered unemployment and should be included in the $10,200 unemployment exemption for households with an annual income under $150,000.

The IRS has not issued any guidance on how exempt unemployment is to be handled on the income tax return.

Pennsylvania never taxes unemployment so you do not have to file a PA return.

[jmblackburn8457]

When will Turbo Tax Software be updated to account for the $10,200 exemption for Pandemic unemployment?

[DoninGA]

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@jmblackburn8457 wrote:

When will Turbo Tax Software be updated to account for the $10,200 exemption for Pandemic unemployment?

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After the legislation has passed Congress and after the President has signed the legislation and after the IRS has written the rules, regulations and procedures.  And after the IRS has changed any forms or schedules to accept the tax code changes.  And after the IRS has approved the changes in the TurboTax program that apply to the tax code changes, then it will be available for the users of the tax preparation software.

This can take anywhere from several weeks to several months before it becomes available.

See this TurboTax support FAQ for information on the American Rescue Plan - https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

[Something4Taxes]

FYI, looks like it's there now. Both the unemployment and the deduction are showing up in the 1040's Schedule 1. Unemployment on line 7 (unemployment compensation), and deduction as a negative value "write in" called "UCE" on line 8 (other income).