Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Common questions on the Unemployment Compensation Exclusion

Intuit Help
Intuit

Common questions on the Unemployment Compensation Exclusion

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are tax-free for households with modified adjusted gross incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020. 

How do I report the exclusion?

Select your program to view the steps to generate the exclusion on your clients' returns.

Do I need to amend returns to update unemployment?

Check your state below to see if you need to amend your state return to get the $10,200 of unemployment income benefits according to the American Rescue Plan.

If yours hasn’t been updated yet, check back next week. We’re working hard to incorporate all state changes.

Select your state:

AlabamaArizonaArkansasCaliforniaColorado
ConnecticutDelawareDistrict of ColumbiaGeorgiaHawaii
IdahoIllinoisIndianaIowaKansas
KentuckyLouisianaMaineMarylandMassachusetts
MichiganMinnesotaMississippiMissouriMontana
NebraskaNew HampshireNew JerseyNew MexicoNew York
North CarolinaNorth DakotaOhioOklahomaOregon
PennsylvaniaRhode IslandSouth CarolinaTennesseeUtah
VermontVirginiaWest VirginiaWisconsin

Federal

For most clients, there's no need to file an amended return to figure the unemployment exclusion. The IRS will refigure the tax amount for affected clients using the UCE and adjust their accounts. Any additional refunds due will be sent directly to your clients.

However, if the exclusion made your client newly eligible to claim a credit or deduction that they couldn't take before, you may need to file a 1040X. See the IRS news release for more information.

Alabama

No. Alabama doesn’t tax unemployment income, so there’s no need to amend for your state. Visit the Alabama Department of Revenue for more information.

Arizona

Arizona hasn’t announced their recommendations for amending state returns to claim the $10,200 unemployment adjustment. See the Arizona Department of Revenue notice for more information.

Arkansas

No. Arkansas doesn’t tax unemployment income, so there’s no need to amend for your state. See the Arkansas Department of Finance and Administration notice for more information.

California

No. California doesn’t tax unemployment income, so there’s no need to amend for your state. Visit the California Franchise Tax Board for more information.

Colorado

No. Your Colorado return included the necessary unemployment income changes when you filed. See the Colorado Department of Revenue press release for more information.

Connecticut

Yes. Connecticut recommends amending your return to claim the $10,200 unemployment adjustment. File Form CT-1040X, Amended Connecticut Income Tax Return for Individuals. See the Connecticut State Department of Revenue Services alert for more information.

Delaware

No. Delaware doesn’t tax unemployment income, so there’s no need to amend for your state. Visit the Delaware Division of Revenue for more information.

District of Columbia

The District of Columbia hasn’t announced their recommendations for amending state returns to claim the $10,200 unemployment adjustment. See the DC Office of Tax and Revenue blog post for more information.

Georgia

No. Your Georgia return included the necessary unemployment income changes when you filed. See the Georgia Department of Revenue update for more information.

Hawaii

Hawaii hasn’t announced their recommendations for amending state returns to claim the $10,200 unemployment adjustment. See the Hawaii Department of Taxation updates.

Idaho

No. However, if unemployment was excluded on the federal return without being added back for Idaho purposes, clients may need to amend. Visit the Idaho State Tax Commission for more information.

Illinois

No. Illinois does not recommend amending your return to claim the $10,200 unemployment adjustment. They will automatically make this calculation for you and send any additional refund you may be eligible for. See the Illinois Department of Revenue update for more information.

Indiana

Indiana hasn’t announced their recommendations for amending state returns to claim the $10,200 unemployment adjustment. Visit the Indiana Department of Revenue for more info.

Iowa

No. Iowa doesn’t recommend amending your return to claim the $10,200 unemployment adjustment. They will automatically make this calculation for you and send any additional refund you may be eligible for. See the Iowa Department of Revenue update for more information.

Kansas

Yes. Kansas recommends amending your return to claim the $10,200 unemployment adjustment. File an amended Form K40, Kansas Individual Income Tax. Visit the Kansas Department of Revenue for more information.

Kentucky

No. However, if unemployment was excluded on the federal return without being added back on the Schedule M, line 5, clients may need to amend. See the Kentucky Department of Revenue news page for more information.

Louisiana

Yes. Louisiana recommends amending your return to claim the $10,200 unemployment adjustment. File an amended Form IT-540, Louisiana Resident Income Tax Return. See the Louisiana Department of Revenue news release for more information.

Maine

Yes. Maine recommends amending your return to claim the $10,200 unemployment adjustment. File an amended Form 1040ME, Maine Individual Income Tax. Visit Maine Revenue Services for more information.

Maryland

Yes. Maryland recommends amending your return to claim the $10,200 unemployment adjustment. File Form 502X, Maryland Amended Tax. See the Comptroller of Maryland news release for more information.

Massachusetts

No. Massachusetts does not recommend amending your return to claim the $10,200 unemployment adjustment. They will automatically make this calculation for you and send any additional refund you may be eligible for. See the Massachusetts Department of Revenue FAQ for more information.

Michigan

Yes. Michigan recommends amending your return to claim the $10,200 unemployment adjustment. File an amended Form MI-1040. See the Michigan Taxes notice for more information.

Minnesota

No. Your Minnesota return included the necessary unemployment income changes when you filed. Visit the Minnesota Department of Revenue for more information.

Mississippi

No. However, if unemployment was excluded on the federal return without being added back for Mississippi purposes, clients may need to amend. Visit the Mississippi Department of Revenue for more information.

Missouri

Yes. Missouri recommends amending your return to claim the $10,200 unemployment adjustment. File an amended Form MO-1040, Individual Income Tax Return. See the Missouri Department of Revenue FAQ for more information.

Montana

No. Montana doesn’t tax unemployment income, so there’s no need to amend for your state. See the Montana Department of Revenue post for more information.

Nebraska

Nebraska hasn’t announced their recommendations for amending state returns to claim the $10,200 unemployment adjustment. See the Nebraska Department of Revenue FAQ for more information.

New Hampshire

No. New Hampshire doesn’t tax unemployment income, so there’s no need to amend for your state. Visit the New Hampshire Department of Revenue for more information. 

New Jersey

No. New Jersey doesn’t tax unemployment income, so there’s no need to amend for your state. Visit the New Jersey Division of Taxation for more information.

New Mexico

Yes. New Mexico recommends amending your return to claim the $10,200 unemployment adjustment. File an amended Form PIT-1, Personal Income Tax Return. See the New Mexico Taxation and Revenue bulletin for more information.

New York

No. However, if unemployment was excluded on the federal return without being added back for New York purposes, clients may need to amend. See the New York Department of Taxation and Finance FAQ for more information.

North Carolina

No. However, if unemployment was excluded on the federal return without being added back for North Carolina purposes, clients may need to amend. See their latest announcement.

North Dakota

No. North Dakota does not recommend amending your return to claim the $10,200 unemployment adjustment. They will automatically make this calculation for you and send any additional refund you may be eligible for. See the North Dakota Tax Commissioner news release for more information.

Ohio

Ohio hasn’t announced their recommendations for amending state returns to claim the $10,200 unemployment adjustment. See the Ohio Department of Taxation resource page for more information.

Oklahoma

Yes. Oklahoma recommends amending your return to claim the $10,200 unemployment adjustment. File an amended Form 511, Income Tax Return. See the Oklahoma Tax Commission public notice for more information.

Oregon

No. Oregon does not recommend amending your return to claim the $10,200 unemployment adjustment. They will automatically make this calculation for you and send any additional refund you may be eligible for. See the Oregon Newsroom post for more information.

Pennsylvania

No. Pennsylvania doesn’t tax unemployment income, so there’s no need to amend for your state. Visit the Pennsylvania Department of Revenue for more information.

Rhode Island

No. However, if unemployment was excluded on the federal return without being added back for Rhode Island purposes, clients may need to amend. See the Rhode Island Division of Taxation announcement for more information.

South Carolina

No. Your South Carolina return included the necessary unemployment income changes when you filed. See their latest announcement for more information.

Tennessee

No. Tennessee doesn’t tax unemployment income, so there’s no need to amend for your state. Visit the Tennessee Department of Revenue for more information.

Utah

No. Utah does not recommend amending your return to claim the $10,200 unemployment adjustment. They will automatically make this calculation for you and send any additional refund you may be eligible for. See the Utah Tax Commission news page for more information.

Vermont

No. Vermont does not recommend amending your return to claim the $10,200 unemployment adjustment. They will automatically make this calculation for you and send any additional refund you may be eligible for. See the Vermont Department of Taxes resource page for more information.

Virginia

No. Virginia doesn’t tax unemployment income, so there’s no need to amend for your state. Visit Virginia Tax for more information.

West Virginia

Yes. West Virginia recommends amending your return to claim the $10,200 unemployment adjustment. File an amended Form IT-140, Personal Income Tax Return. See the West Virginia Tax Department for more information.

Wisconsin

No. Your Wisconsin return included the necessary unemployment income changes when you filed. See the Wisconsin Department of Revenue news page for more information.

Was this helpful?

You must sign in to vote, reply, or post