Taxes and unemployment

[emmaneveu]

Good evening,

I received some unemployment benefits at the beginning of 2021, will I still be able to file my taxes for free on turbotax? Will the process be as easy as it was last year?

Thank you very much.

Kind regards,

Emma

[Contented]

Yes.  Start with the free version and if there are any tax situations that arise you will be notified if you need to upgrade. 

[MayaD · Accepted solution]

If you received unemployment benefits, you need to upgrade to TurboTax Deluxe.

[emmaneveu]

Thank you for your reply. I tried filing but as soon as it asked if I have unemployed to declare, I needed to switch to the deluxe option. So basically, if I want to file my 2021 taxes with turbotax, I must upgrade to the deluxe version? I cannot do it with the free version? And if yes, why? 

Thank you

[emmaneveu]

Thank you for your reply.

Why, this year, do we need to upgrade to file this year if we received unemployment?

[DawnC]

Reporting unemployment requires additional forms - 1099-G - that is not included in the Free Edition.   There was an exception last year due to the number of people on unemployment, but that was only for the covid year - tax year 2020.  

Depending on what your tax situation was last year, you might need to use new tax forms to claim the same deductions, credits, or forms of income. Some of the situations that are now in TurboTax Deluxe and TurboTax Live Deluxe, instead of in Free Edition, include:

• Unemployment income
• Retirement savings contribution credit for 401(k) and IRA contributions
• Education credits
• Child dependent care credit

Go here for more info on which forms are included in TurboTax Free Edition.

[emmaneveu]

Thank you very much.

Kind regards,

Emma