I'm trying to add the unemployment exclusion. I don't think it was not reflected in my 1099-G. How can I add that?

[xmasbaby0]

You do not "add" anything about the exclusion.   The software will take care of it automatically.   The first $10,200 of your unemployment will not be taxed on your federal return.   There are still a few states that are taxing unemployment--but we do not know what state you are in.

Enter your 1099G in Federal>Wages & Income>Unemployment  

Go through the screens very carefully, making sure  to enter any federal/state tax you had withheld from the unemployment.

[jon-cpr1-gmail-c]

Thank you. But I'm not seeing how or if the $10,200 is applied? I made $26,309 from Unemployment Insurance. So I'd only be responsible for 1,6109, correct? I'm in NY so I believe this exclusion applies to my Federal Tax, but not State. I've added all my wages and income for the year and deductions already. Currently, my Federal Tax Bill is $1629.00 and my State Tax due is $2180.00. When this is applied, will I owe $0 on Federal Tax Due and adjusted down on or possibly no change on State Tax Due? When I submit will I see how this applies? It is just not clear how I can see this reflected on the Turbo-Tax program even though it says it is factored in. 

Please advise. Thank you.  

[Opus 17]

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@jon-cpr1-gmail-c wrote:

Thank you. But I'm not seeing how or if the $10,200 is applied? I made $26,309 from Unemployment Insurance. So I'd only be responsible for 1,6109, correct? I'm in NY so I believe this exclusion applies to my Federal Tax, but not State. I've added all my wages and income for the year and deductions already. Currently, my Federal Tax Bill is $1629.00 and my State Tax due is $2180.00. When this is applied, will I owe $0 on Federal Tax Due and adjusted down on or possibly no change on State Tax Due? When I submit will I see how this applies? It is just not clear how I can see this reflected on the Turbo-Tax program even though it says it is factored in. 

Please advise. Thank you.  

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There is nothing to "apply."  If you are preparing a new return now (and not trying to amend an old return) the UEC exclusion is automatically calculated by Turbotax.  It has already happened.  What you see is what you get.  Your 1099-G is not adjusted, because that reports the amount of income you actually received.  Your income did not change, just the tax calculations for some of that income, and that's all handled internally by the program.  

You can view the worksheets if you are using Turbotax installed on your own computer, but not using Turbotax Online.  The UEC worksheet might be part of the PDF of "all forms and worksheets" that you can download once you have paid the fee for Turbotax online.  

If you aren't convinced, you will have to print your returns before filing, you should see your NY income will be higher than your federal income. 

[SweetieJean]

The gross unemployment comp will show on Federal Schedule 1, line 7.

The $10,2000 subtraction will show in Schedule 1, line 8.

2020 Schedule 1 (Form 1040) (irs.gov)

Then Schedule1, line 9  transfers to Form 1040, line 8.

2020 Form 1040 (irs.gov)

[jon-cpr1-gmail-c]

Thank you. 

But my Tax due seems way too high based on my income and deductions and I'm not seeing how the 10200 has been applied.  Can I see the 1040 in my account so I know it has been added properly? 

[xmasbaby0]

https://ttlc.intuit.com/community/printing/help/can-i-print-a-copy-of-my-turbotax-online-return-befo...

[jon-cpr1-gmail-c]

I’m not looking for a button that says “apply.” I mean I don’t yet see the value or benefit of the 10200 or how it impacts my taxes owed. Overall, I’m paying 12% tax on around 42K Gross income of which 80% was unemployment. Just applying the itemized deduction and the exclusion would make that even lower. That is not even counting my personal and business deductions. I would think the exclusion would provide a better benefit. So I'm concerned something is off. I'd like to be able to review everything to make sure. Turbo-Tax does not allow me to see how the exclusion applies because I can’t yet access my1040 where I know it should be. Do I have access to my 1040 so I can see the exclusion?

[Opus 17]

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@jon-cpr1-gmail-c wrote:

I’m not looking for a button that says “apply.” I mean I don’t yet see the value or benefit of the 10200 or how it impacts my taxes owed. Overall, I’m paying 12% tax on around 42K Gross income of which 80% was unemployment. Just applying the itemized deduction and the exclusion would make that even lower. That is not even counting my personal and business deductions. I would think the exclusion would provide a better benefit. So I'm concerned something is off. I'd like to be able to review everything to make sure. Turbo-Tax does not allow me to see how the exclusion applies because I can’t yet access my1040 where I know it should be. Do I have access to my 1040 so I can see the exclusion?

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With Turbotax online, you can't view or print your real tax form until you have paid the fee.  You can pay the fee with a credit card, then print your forms to review, then go back to the program to make more changes.  You don't have to file when you pay and you won't have to pay again when you are ready to file.

You can also go to the Tax Tools menu and click "preview my 1040" which will tell you what the key numbers are (income, deductions, tax) but without giving you an actual printable tax form.  Your unemployment compensation is reported on schedule 1, line 7, which goes to form 1040, line 8.  So line 8 should be $10,200 less than your actual UEC.

Another way to play around with the numbers would be to go into the 1099-G section for your UEC and change it to $1.  That will show you a tax amount or tax refund without the UEC.  Then change the UEC amount to $10,199.  Your federal tax due/refund should not change, since the exclusion is automatically applied, but your state refund should go down, if your state taxes the entire amount.  Then put your UEC back to the correct amount.  

With $42K gross and $12,400 standard deduction, that's $30,000 of gross taxable income, or $20,000 of taxable income with the UEC exclusion.  Either of those will be taxed at 12%.  (10% for the first $9800 and 12% for everything over that, if you are single.)

[jon-cpr1-gmail-c]

Thank you. On your second to the last paragraph about changing 1099-G to $1. I was never given the option to add the UEC. I assumed it was automatic and it does show up on my 1040. All I added was my 1099-G and the income. Should I be able to add the 10,200 manually?

Also, based on your last paragraph, I still don't see why my tax due is so high. 

Here are my calculations: 

41535 (AGI)

-22,600 (Standard Deduction + UEC)

= 18935

Total Tax Liability:

Automatic 10% tax on initial 9,800 (from 18935) = 980

Additional 12 % (single person) tax on remaining 9,135= 1096

Total: 980 + 1096=2076 Tax Due on State and Fedeal (?)

TurboTax has me paying:

Federal: 1629

NYS: 2180

The only reason I can think as to why TurboTax has me paying more tax due is that the UEC only applied to the Federal and NYS has more required taxes, in addition to the UEC not applying to State. 

Does that sound right? Or does my tax due seem high based on my AGI?

[Opus 17]

@jon-cpr1-gmail-c 

first, what I was suggesting is it if you changed the amount of the 1099G, you would be able to see how smaller or larger amounts affect your tax return and you should be able to see that amount less than $10,000 do not affect your tax return because the exclusion is automatically applied.

Second, federal and state taxes are calculated and assessed separately.  If you are single using the standard deduction, the New York State standard deduction is $8000 in New York taxes all of your unemployment compensation. New York’s income tax rate is around 5 1/2%.  

Neither of your numbers lines up exactly with the tax tables. Did yo I get the federal and state taxes mixed up?  There may be something that you are missing. In any case, if you have questions you will need to pay and print your complete tax return so you can review it line by line, or contact customer support and they can do a screen share with you.

[jon-cpr1-gmail-c]

Ok. I think I understand what you are saying. 

I don't know what I could be missing. Can you be more specific? 

When you say "Neither of your numbers lines up exactly with the tax tables"?

Thanks!

[jon-cpr1-gmail-c]

Sorry, the last question was incomplete. See below:

When you say, "Neither of your numbers lines up exactly with the tax tables" Which numbers are you referring to?

Thank you.