Is there now a new deduction for someone who earned unemployment in 2020?

[holx]

I was told I might be able to receive more from my tax return?

[VolvoGirl]

Yes.  If you have unemployment you can exclude up to 10,200 for each person if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

Did you already file?  If you already filed and didn't get the 10,200 unemployment exclusion you do not need to amend.  The IRS will be adjusting it for you.  See,

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

If you haven't filed yet Turbo Tax is updated for it and will automatically enter it.  You don't have to do anything.  Just enter the full amount on the 1099G.  

[Bsch4477]

Yes, $10,200 deduction from unemployment income. This will be handled automatically starting this month by the IRS. But you might have to amend your state return.