This is not a TurboTax error. The unemployment exclusion on your federal return must be added back on your IT-558 form. NYS has not made a decision regarding the exclusion of unemployment nor has the state made any changes to the law. Therefore, there is no exclusion in NYS for your unemployment. If they decide to exclude a portion of unemployment in the future, you can amend your return to get the difference in state tax.
For income tax purposes, thresholds and amounts used in the EIC calculation of this credit will be based on a recomputed federal adjusted gross income (FAGI) based on these changes. This will take your adjusted gross income and add back anything that the state does not exclude for state purposes, such as unemployment.
For example - currently, the $10,200 would be added back to your federal Adjusted Gross Income (AGI) in calculation of your NYS EIC.
For more information, please see IT-215 Instructions.
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