Question

How Turbo Tax will exclude DE state taxes from unemployment?

Forum|Forum|5 years ago
February 6, 2021
1 reply
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The DE gov. is going sign the HB 65 bill, which will exclude unemployment benefits from DE taxation for 2020 tax year. They are not taking any taxes from unemployment benefits. I haven't started my state info on Turbo Tax but I did file the federal taxes. While I did federal taxes, Turbo Tax guess my husband & I owe over $1400 to DE because of the unemployment benefits. Why Turbo Tax not follow the DE law? According to the law, they can't take taxes out.

TurboTax Deluxe Online

DawnC

Employee

The law was just passed a few days ago and TurboTax will be updated to reflect the changes in the law. You will be able to exclude your unemployment income from Delaware state tax in TurboTax soon. E-filing does not start until Feb 12th.

Residents filling out a Delaware income tax return should put the amount of unemployment benefits that they received in 2020 on line 36.

Nonresidents filling out a Delaware income tax return should put the amount of unemployment benefits that they received in 2020 on line 25.

TurboTax will do this for you once the software is updated. Unemployment benefits have to be included in adjusted gross income and will still be taxed at the federal level.

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