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danielttx
New Member

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

I am eligible for a deduction, and the amount of the allowable deduction should be reported  on Schedule Y, line 9 (as per MA DUA)
10 Replies
JoannaB2
Expert Alumni

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

it depends. Since the Massachusetts income threshold is different from the federal income threshold, some taxpayers may be eligible for a deduction on their federal tax return but not on their Massachusetts tax return.  You may check the chart below, if you qualify the exclusion.

 

Income limits based on 200% of the federal poverty level.

# Persons      200% of the Federal Poverty Level

1                     $25,520

2                     $34, 480

3                     $43,440

4                     $52,400

5                     $61,360

6                    $70,320

7                    $79,280

8                    $88,240

 

For households with more than 8 persons, add $8,960 fo reach additional person.

 

As a result of a recent state law change, taxpayers with household income not more than 200% of the federal poverty level may deduct up to $10,200 of unemployment benefits from their taxable income on their 2020 and 2021 tax returns for each eligible individual. Federal law allows a deduction of up to $10,200 if the taxpayer’s federal adjusted gross income is less than $150,000.

 

If you already filed your return, don't amend your 2020 return. DOR will send a communication to all taxpayers who previously filed a 2020 income tax return reporting unemployment income and will adjust tax returns automatically for most taxpayers who meet the criteria for the unemployment deduction

danielttx
New Member

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

I know am eligible for a deduction, I meet the under 200% of the PFL.
Your response is part of a letter I received from the MA DUA.
In their letter they specify: "If you have not filed your 2020 Massachusetts income tax return yet, you should report the full amount of your unemployment income on your Massachusetts return using line 8a on resident tax returns (Form 1) or line 10a on nonresident/part-year resident tax returns (Form NR/PY). If you are eligible for a deduction, you should report the amount of the allowable deduction on Schedule Y, line 9"
TurboTax does not give me access to MANUALLY fill that schedule, and I cannot do it, as TT does transfer automatically the data from the Fed onto the MA return.

CatinaT1
Expert Alumni

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

Are you sure you have the latest version of TurboTax?  This is updated and should happen automatically.  State's Unemployment

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danielttx
New Member

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

I use TurboTax online, so it is the current version.

No, the new deduction (issued on April 1st by the MA DUA) was NOT implemented in the update for MA TT.
The TT update screen you sent me to, which states that the MA state is up-to-date was done before that change.
I cannot access the Schedule Y, line 9 on my MA 2020 return to verify that the deduction is in unless I file it.  I cannot file because by filing I have to pay the state an amount I DO NOT OWE, rather than get a refund.

CatinaT1
Expert Alumni

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

Try clearing your cache and cookies.  This should allow for the most up to date version.  

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jonthon23
New Member

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

When will TT update for ones that already filed? I owed previously. I haven't paid yet as I am waiting for TT to update MA. Federal was done quickly.  When will state be updated?

MarilynG1
Expert Alumni

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

@jonthon23 If you have already filed your return, here's info from the Massachusetts Dept. of Revenue:

 

"Do not file an amended 2020 return before you hear from us. DOR will send a communication to all taxpayers who previously filed a 2020 income tax return reporting unemployment income and will adjust tax returns automatically for most taxpayers who meet the criteria for the unemployment deduction."

 

 

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TuTx11
Level 1

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

TurboTax should adjust its state tax software to automatically calculate the amount of the allowable deduction on Schedule Y, line 9 of the MA state form. I work in IT and I know It should be a very simple update, by making that line (Schedule Y, line 9) a self-calculating field based on the taxable income transferred from the Fed 1040 to the state form. The allowed deductions are based on that income, according to the table published by the Massachusetts' DUA, as follows:
Persons 200% of the Federal Poverty Level
1 $25,520
2 $34, 480
3 $43,440
4 $52,400
5 $61,360
6 $70,320
7 $79,280
8 $88,240
This would allow taxpayer to avoid paying upfront taxes that may not be owed (especially in these difficult financial times) and reduce the possibility of delays and/or mistakes,  which would create additional back-and-forth communications/paperwork and unnecessary waste of time and resources to fix the problem(s).

jonthon23
New Member

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

TT has not updated for ones that have already filed. As myself.  I am just wanting to know if they will be updating for ones that already filed. 

MaryM428
Level 10

MA state allows for a $10,200 deduction as of April 1st 2021. This is not implemented in my tax return. My taxable income should be adjusted by that. How do I change it?

TurboTax is working with the IRS to resolve all of the issues related to the American Rescue Plan.  All issues will be addressed and resolved.  For people who already paid the federal income tax on the first $10,200 or unemployment and qualify for that to be forgiven, the IRS will start issuing refunds in May.  

 

IRS American Rescue Plan



@jonthon23

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