Update: We have updated the tax calculations to reflect the information below. As the IRS issues further guidance regarding UCE, we will make the appropriate calculation changes.
Click here to view latest unemployment Instructions
We are in the process of updating the federal program to accommodate the instructions that have been released by the IRS. If you have any of these forms or tax situations + unemployment, you will want to hold these returns until we have delivered the updated changes to the application.
Include the full amount of your unemployment compensation from Schedule 1, line 7 when figuring the following deductions or exclusions from income. See the specific form or instructions for more information. If you file Form 1040-NR, you aren’t eligible for all of these deductions. See the Instructions for Form 1040-NR for details.
- Taxable social security benefits (Instructions for Form 1040 or 1040-SR, Social Security Benefits Worksheet)
- IRA deduction (Instructions for Form 1040 or 1040-SR, IRA Deduction Worksheet)
- Student loan interest deduction (Instructions for Form 1040 or 1040-SR, Student Loan Interest Deduction Worksheet)
- Nontaxable amount of Olympic or Paralympic medals and USOC prize money (Instructions for Form 1040 or 1040-SR, Schedule 1, line 8)
- The exclusion of interest from Series EE and I U.S. Savings Bonds issued after 1989 (Form 8815)
- The exclusion of employer-provided adoption benefits (Form 8839)
- Tuition and fees deduction (Form 8917) Update 3/24: You will receive IRS Reject Code F8917-012 if you have both unemployment and an 8917 in the return until the IRS has an opportunity to update any business rules associated with the changes to UCE due to the American Rescue Act. Update 3/26: The IRS has disabled this business rule
- The deduction of up to $25,000 for active participation in a passive rental real estate activity (Form 8582)