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AGI adjustment for 2020

I've seen conflicting information from the IRS and TurboTax.  Here's a scenario:  

  • 2020 AGI as filed before the stimulus bill was $169,500
  • Married, filing jointly with each spouse receiving more than $10,200 in unemployment 
  • I saw an IRS published clarification recently that taxpayers could deduct the $10,200 for each tax payer before calculating their adjusted AGI - so in this case: $169,400 - $20,400 = $149,400 adjusted AGI, so refund qualified
  • However, on the TurboTax site it states that the AGI must be below $150,000 as filed to qualify, i.e. you cannot deduct the $10,200 (or $20,400 for two) unemployment first to qualify for the AGI limit

Which is correct?  Any guidance is appreciated.

 

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2 Replies

AGI adjustment for 2020

[edited]

 

Right, the amount of unemployment received in 2020 is not included in the AGI to determine the $150,000.

 

To qualify your AGI must be less than $150,000 that is determined by the original AGI (1040 line 11) minus and unemployment Schedule 1 line 7.    That is how TurboTax does it. 

 

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs-topic-a-eligibility

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

AGI adjustment for 2020

Thank you, very helpful.

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