UCE credit question

Forum|Forum|5 years ago
July 29, 2021
10 replies
59 views

So I filed back in February before the credit. On the other income line I had a $2000 small hobby income 1099 on line 8. Now that the $10k UCE credit has amended on my return I now show a ($8k) on line 8. Will this present a problem for the IRS AUR computer program where it will read a credit on line 8 and issue me a CP2000 for not reporting my 1099

Not A Product Question

Critter-3

Level 15

The correct way the unemployment on the return is to have it show on the sch 1 line 7 (full amount received) and the exclusion on the sch 1 line 8 (up to the amount on line 7 or the max allowed). No CP2000 will be issued because you DID report all your income. The exclusion is a totally separate matter.

The netting of the hobby income against the exclusion is just math. See the statement showing them both being reported.

CuriousWhaleAuthor

Level 5

My unemployment on Line 7 was 20k

my line 8 now has a credit of 10k and hobby income of 2k for a (8k total )

I guess my concern was that the computer programs wouldn’t have the logic when looking to see my 1099 and would read line 8 as a credit

CuriousWhaleAuthor

Level 5

The CP2000 are computer generated automatically ... no human interaction is needed for this notice to be sent.

And the actual return forms that you look at is not what is sent to the IRS ... just the info on the lines of the returns are transmitted which would include any totaling statements if needed. Look at a return transcript to see what is actually sent ... just form/line amounts ... basically a short hand version is sent. If a human needs to look at it then it can be translated into a tax form version.

I really appreciate your information. I am in no way questioning your knowledge . I am trying to learn. If all they see is (8k) other income on the return transcript how would they then know I reported it? Again I appreciate your informative responses