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Deductions & credits
So I did review the changes TurboTax made in regards to unemployment compensation for my fiancee's return, which had already been filed.. It does appear that the changes TurboTax made (so far) did (correctly) decouple the change from the IRC in regards to unemployment compensation correctly (for now). If NY does not enact any type of legislative action to change this by April 1, this is the correct behavior. On the federal side, Schedule 1 does now have the offset value for UCE on Line 8, which eliminates the unemployment compensation she received on Line 8 of the 1040. On the NY IT-201, Line 14 (Unemployment compensation) does still show the full unemployment amount, and is included as part of the NY AGI on Line 19 of that form.
Interestingly, the change that was made to unemployment also impacts her eligibility for claiming the EIC credit this year, as the change now makes her eligible - and when she originally filed, the UC pushed her over the threshold of eligibility. We'll see what the IRS does in regards to recalculating the refund on the federal side (for her, it results in an additional $2200 refund from federal). Due to the EIC change and how it carries over to NY, this also nets her an additional $300 from NYS.
What a mess -- even if the IRS does make the corrections on the federal return, we'll still need to file an amended return for her to take advantage of the changes it made to her NY return due to the EIC credit. Thankfully, we are both fully employed and financially secure - so there is no rush to get the money. I know others are not so fortunate. Its more of an issue of my OCD in ensuring all of her paperwork is accurate.