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New Member
posted Mar 7, 2021 3:26:13 PM

The '21 Stimulus Bill is making it so 2020 unemployment benefits are not taxed. Has this change been enacted in TurboTax? I.E. will the unemployment I received be taxed?

The amendment in the final stimulus bill will make the first $10,200 in unemployment benefits received in 2020 non-taxable. Has this been noted in TurboTax yet? I want to make sure that the unemployment I received will not be automatically taxed in TurboTax.

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1 Best answer
Level 15
Mar 7, 2021 3:32:17 PM

This bill has not yet been enacted into law.  Assuming it does, the IRS must then develop procedures for handling it; which TT must then program, test and then have approved by the IRS. So stay tuned.

4 Replies
Level 15
Mar 7, 2021 3:31:50 PM

No.  It is not even law yet and if it becomes low then the IRS must develop the regulations and methods of implementing it.  Could take months.

Level 15
Mar 7, 2021 3:32:17 PM

This bill has not yet been enacted into law.  Assuming it does, the IRS must then develop procedures for handling it; which TT must then program, test and then have approved by the IRS. So stay tuned.

New Member
Mar 14, 2021 12:15:25 PM

I'm waiting to see what happens after.  Will we have to amend it.  If this goes through?

Level 1
Mar 14, 2021 12:26:00 PM

You might have to amend, you they can do a credit for 2021. There is no information from the IRS regarding unemployemtn exclusion yet.