UCE credit question

Forum|Forum|4 years ago
July 29, 2021
1 reply
16 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

Critter-3

Level 15

That is correct ...line 8 should correctly show the +2000 and the -10000 for a net line entry of -8000. This is how that line works. There could be 10 entries on that line and the net total is on Sch 1 line 8 ... this is SOP.

They get the information from the filed return same as you have on the PDF you have in your hands and if both items are not individually listed on the sch 1 line 8 then the "overflow statement" is also sent ... do don't worry, they have everything the need to process the return.