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May 3, 2021
Question

What is the exact amount of unemployment that is tax exempt from my federal return? And where does it appear?

  • May 3, 2021
  • 1 reply
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May 3, 2021

The IRS allows households with less than $150,000 of modified adjusted gross income to exempt the first $10,200 of unemployment for the taxpayer and spouse.

 

The exempt amount appears as a subtraction on line 8 of Schedule 1 with the code "UDE".

 

You can see this by previewing your Form 1040.

  • Click Tax Tools in the left column
  • Click Tools below that
  • In the center column, select View Tax Summary
  • In the left column click Preview my 1040
  • You will see Federal 1040
  • When you are done, click Back in the left column
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