Federal unemployment tax allucation i dont see where it adjusts on the return ?

if you filed your return after the update for nontaxable UC the subtraction should appear on schedule 1 line 8.  you do need to report the full amount on the 1099-G.   if you filed before the app was updated the IRS says it will correct tose returns and make a refund. do not file an amended return. 

The up to $10,200 exemption for unemployment for taxpayers whose income is less than $150,000 is reported as a subtraction on line 8 of Schedule 1 as an adjustment to income with the code UCE.

If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan, excludes from income up to $10,200 of unemployment compensation paid in 2020.

If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200.

Amounts over $10,200 for each individual are still taxable. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation.

Related Resource:

• New Exclusion of up to $10,200 of Unemployment Compensation