"which added to taxable income on 1040 ln 7 which was what I expected."

Is the perspective of this next sentence per the software or per the provision: "I can not find anything about carrying 2020 amount forward."

Are you having them taxed on the amount or did their employer elect to allow it to meet the relief provision(s)?

https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/irs-guidance-clarifies-relief-for-fs...