Currently the IRS and states have not released any changes in the taxation of unemployment income. There are no hardship exemptions or changes in regulation. You can review the IRS taxation of unemployment on IRS Tax Topic no. 418.
Any unemployment income you received during 2020, even if you lost your job because of coronavirus (COVID-19) related closures, will need to be reported as taxable income on your return.
You should still receive a 1099-G with Box 1 income to report your 2020 unemployment benefits. Please report these unemployment benefits under:
- Federal Section
- Form 1099-G Box 1.