topic TurboTax double counting Unemployment Compensation Exclusion on state taxes? in Get your taxes done using TurboTax

TurboTax double counting Unemployment Compensation Exclusion on state taxes?

conorodonnell — Thu, 25 Mar 2021 21:54:28 GMT

My state taxes seemed to be under calculated for what I owe because they are basing my Virginia taxable income on my Federal AGI, which includes the -$10,200 for the Unemployment Compensation Exclusion. TurboTax then calculates my Virginia taxable income as Federal AGI minus the entirety of what I was paid in unemployment, since it isn't taxed in Virginia.

However, this is making my Virginia taxable income $10,200 lower than it should be because it is subtracting my total unemployment received from Federal AGI which is effectively double counting the unemployment compensation exclusion deduction for my state taxes.

Example:

Federal Total Income: $47,200

-$10,200 unemployment compensation exclusion

Federal AGI = $35,000

State estimates taxable income as Federal AGI - Total Unemployment Compensation ($35,000 - $20,200 = $10,000)

Total taxable Virginia wages = $10,000

Am I incorrect here that the unemployment compensation exclusion is being calculated twice for my state?

Re: TurboTax double counting Unemployment Compensation Exclusion on state taxes?

savafritts — Sun, 28 Mar 2021 22:43:09 GMT

I believe you are correct. I have experienced the same on the Cd/Desktop deluxe version. I called and tried to explain to an agent and she never understood what I was trying to tell her. What now? I'm sure VA will not like this and we will all get bills in the mail.

Re: TurboTax double counting Unemployment Compensation Exclusion on state taxes?

conorodonnell — Sun, 28 Mar 2021 23:10:37 GMT

I called them to and they kept saying it was because I was filing 2 state returns. But it seems that they fixed it on Friday sometime because it matched other software I was using and looking at the forms they added it back in. So it should be good to go.

Re: TurboTax double counting Unemployment Compensation Exclusion on state taxes?

savafritts — Sun, 28 Mar 2021 23:15:10 GMT

Well this was Friday after 4:00 PM that I was on phone and I just checked again and my VA is still incorrect. I only file one state and 1040SR federal. Thanks,

Re: TurboTax double counting Unemployment Compensation Exclusion on state taxes?

savafritts — Sun, 11 Apr 2021 21:09:38 GMT

Well here it is weeks later (4/11/21) and VA State taxes seem to be fixed to add back the 10,200 on the Age deduction worksheet. Wish I had gotten an email on this update. But better late than never I guess.