As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments may now be tax-free for a person with an annual modified adjusted gross income of less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.
If you haven't filed your return yet, go ahead and do so. TurboTax is up-to-date with the latest federal changes. Check your state's updates here.
If you've already filed your return, the IRS says you don’t need to do anything to take advantage of this benefit. They've assured us there's no faster way to get any additional money you are owed. In fact, amending your return could delay your payment. Each state, however, is handling this differently. Go here to check if you should amend your state return to claim the unemployment benefits.