Based on the new law that was just signed into place this month (no taxes on employment wages up to $10,200), how should the 1099-G portion of my filing be edited?

[Jdesjar11]

If I made more than $10,200 in unemployment wages, do I enter the difference as my unemployment compensation?

[CatinaT1]

No.  You will enter your entire unemployment wages.  TurboTax will automatically offset the $10,200 on line 8 of your 1040.

[chris193]

I have noticed that this new law does not take into account this on the social security worksheet line 3 ! If you get SS and were employed and earned unemployment and your SS  earning r above 25k the unemployment deduction does not account for up to $10,200 deduction . 

Why? 

thanks 

[ColeenD3]

Are you in the Desktop version? It has not yet been updated for the changes in unemployment. The Online version has been updated and will take it into consideration. we do not yet have a date for the Desktop version.

[chris193]

thank you for responding! Im on the Online version and it does not take that into account .The reason I know is that I did it both ways;

1) included  the unemployment compensation normally 

2) Eliminated the unemployment amount completely

I found that when i compared the SS worksheets line 3 showed a difference; in my case i had $3000 which is my unemployment compensation.

thanks chris

[ColeenD3]

You are correct. It is being reported for investigation. Tax season was extended until May 15, so keep trying back to see when updates have gone through.

[Sedonamoongoddess]

Not only is the unemployment not updated as non taxable in Turbo Tax, but in Pro Series it has not updated correctly for Social Security.  It still shows as taxable income in the calculations for taxable Social Security benefits.

When will Intuit be updating each of these issues?

thanks

[macuser_22]

---

@Sedonamoongoddess wrote:

Not only is the unemployment not updated as non taxable in Turbo Tax, but in Pro Series it has not updated correctly for Social Security.  It still shows as taxable income in the calculations for taxable Social Security benefits.

When will Intuit be updating each of these issues?

thanks

---

The law that Congress passed specifically said that the unemployment exemptions shall NOT affect taxable Social Security.    There should be no change in  the SS tax.

[chris193]

Im not sure that makes sense .... lol

[ColeenD3]

Here is some more information I found. You can compare the Unemployment Exclusion Worksheet to the SS worksheet. I am seeing that it doesn't come into play since the SS worksheet references Schedule 1 lines 10-19.

Exemption worksheet

SS worksheet

[chris193]

Thank you for the info! As i said it doesn't make sense but then Agn its the government!! lol

[Sedonamoongoddess]

I don't see that, all you keep sending me to on the link is the Unemployment Worksheet.  I printed the SS taxable income worksheet and it indicates that Line 10 of Schedule 1 should be used which would be the balance of unemployment benefits after the $10,200 exclusion.

Not clear at all...right?

[Sedonamoongoddess]

Where are you seeing this, I haven't been able to find that anywhere in print

[ColeenD3]

Here is the language of the bill and a screen shot of the worksheet.

“(1) IN GENERAL.—In the case of any taxable year beginning in 2020, if the adjusted gross income of the taxpayer for such taxable year is less than $150,000, the gross income of such taxpayer shall not include so much of the unemployment compensation received by such taxpayer (or, in the case of a joint return, received by each spouse) as does not exceed $10,200. “(2) APPLICATION.—For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined—
“(A) after application of sections 86, 135, 137, 219, 221, 222, and 469, and
“(B) without regard to this section.”.

[macuser_22]

---

@Sedonamoongoddess wrote:

Where are you seeing this, I haven't been able to find that anywhere in print

---

It is written in the law passed by Congress in lawyers legalese.

https://www.congress.gov/bill/117th-congress/house-bill/1319/text

§9042(a)(2)(A) & (B)  and 9042(b)(2)

and §9042(b)(2) that says:

Section 86(b)(2)(A) of such Code is amended by inserting “85(c),” before “135”.

Section 86 is modified AGI for Social Security and “85(c),” says not to include the unemployment credit when calculating the taxable SS.