My state taxes seemed to be under calculated for what I owe because they are basing my Virginia taxable income on my Federal AGI, which includes the -$10,200 for the Unemployment Compensation Exclusion. TurboTax then calculates my Virginia taxable income as Federal AGI minus the entirety of what I was paid in unemployment, since it isn't taxed in Virginia.
However, this is making my Virginia taxable income $10,200 lower than it should be because it is subtracting my total unemployment received from Federal AGI which is effectively double counting the unemployment compensation exclusion deduction for my state taxes.
Federal Total Income: $47,200
-$10,200 unemployment compensation exclusion
State estimates taxable income as Federal AGI - Total Unemployment Compensation ($35,000 - $20,200 = $10,000)
Total taxable Virginia wages = $10,000
Am I incorrect here that the unemployment compensation exclusion is being calculated twice for my state?
