UCE credit question

Forum|Forum|5 years ago
July 29, 2021
10 replies
51 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

Honey ... they do not just "see" the $-8000 ... they get all the info on that line ... the +2000 & -10000 netting out at -8000. Why do you think they do not get the entire picture when you efile or mail in a return ?

I have 30 years in the business & have taught income tax prep classes so I do know what I am talking about. Please stop worrying about nothing.

Critter- May I PM you a personal Question I would like to gather your advice on?