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We are still waiting as the treatment is still being determined at this point by the IRS. According to the newly passed legislation, the first $10,200 on unemployment earned in 2020 would be considered nontaxable if your household income is less than $150,000.
IRS Statement on American Rescue Plan
Once the IRS issues some guidance, TurboTax will be able to update their software accordingly.
How will the 3rd stimulus affect me
You can sign up for updates on the link below:
Sign up for updates on unemployment benefits
it looks like turbo tax was updated on the federal side for the unemployment tax waiver but i notice i still have tax due for the state. i am filing in nys, are the states not allowing for the same waiver?
As of today--New York has not followed the trend to exempt unemployment---so it is still taxable in your state. Quite a few states have enacted new changes to follow the federal example, but some have not. Alas--NY has not.
do you think this could change or is this set in stone?
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