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InTheRuff
Returning Member

Delaware Unemployment Exclusion Issue

TurboTax Deluxe Desktop is not handling the exclusion of unemployment compensation from Delaware taxable income correctly.

 

I entered the amount of unemployment compensation I received as an exclusion from income as required. However, the amount of the exclusion is being double-counted on Line 36 of the return. Thus, twice as much income is being excluded from my Delaware taxable income than I am entitled to. This means that my Delaware taxable income and state taxes are wrongly calculated.

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3 Replies

Delaware Unemployment Exclusion Issue

we can't see your return.  since the federal exclusion is automatic, did you reenter the exclusion for Delaware resulting in the double up?  Delaware starts out with Federal AGI which already contains the exclusion.

 

 

 

 

InTheRuff
Returning Member

Delaware Unemployment Exclusion Issue

No, the return does not qualify for the federal exclusion- the federal AGI properly includes the entire amount of unemployment compensation.

 

The Delaware state exclusion is the only one.

 

(Even if there was a federal exclusion the problem would still occur. For example, if I entered an exclusion for Delaware of $5000 which took into account the federal exclusion, TT would enter an amount of $10,000 on Line 36 of the Delaware return which is clearly wrong.)

InTheRuff
Returning Member

Delaware Unemployment Exclusion Issue

OK, I think I figured out what’s causing the problem.

 

It looks like TurboTax automatically excludes unemployment compensation from Delaware taxable income so there’s no reason to enter manually on the Delaware exclusion form.

 

But the instructions for the fiduciary adjustment form still say to enter unemployment compensation as a subtraction: 

 

Screen Shot 2021-05-01 at 10.53.16 AM.png

 

These instructions are wrong and if they are followed, it will result in double-counting of the unemployment income exclusion - Intuit needs to fix it.

 

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