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mpsportster
New Member

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

 
9 Replies
MaryK1101
Expert Alumni

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

Delaware passed this law very recently Unemployment Benefits- Taxpayers are permitted to exclude unemployment compensation from adjusted gross income in Delaware for the 2020 tax year.

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mpsportster
New Member

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

How do I exclude it in TT?

JohnW152
Expert Alumni

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

Include the amount of unemployment compensation that was included on your Federal adjusted gross income on line 36, Delaware State tax refund, of Form 200-01 to reduce your Delaware AGI.

Delaware residents and part-year residents electing to file as residents begin with federal AGI.  For the 2020 tax year, taxpayers are allowed to exclude unemployment compensation from adjusted gross income. 

Please see 2020 Instructions for Form 200-01, Resident Individual Income Tax Return for more information.

anotherusernamegreat
New Member

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

Yes, but TT won't let me adjust line 36 of the Delaware form 200-01??  How do you override this?

ant943
New Member

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

Hello,

 

So on the Federal side should the 1099-G not reported on the Wages and Income section?

Then on the DE State side should the Unemployment Comp be listed own the Other Exclusion List?

 

Thanks for the help!

Daizeyspatch5344
Level 2

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

I have similar issue. However, I already efiled before our Governor did this. I ended up owing 858.00. Do I have to amend my taxes?

ReneeM7122
Level 9

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

Yes, you will need to amend your tax return after it is received by the IRS.  

In the State section you will enter a correction under "Enter your Total Other Exclusions."

 

Here is an example of what that entry would look like:

ant943
New Member

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

Should it be recorded with a negative like your screenshot shows?

 

Also, on the Federal return do I still need to report the Unemployment as income?

LenaH
Expert Alumni

Unemployment has been made tax exempt in DE, but TT is counting it as income on state form.

Yes. Unemployment is taxable income and needs to be reported on your federal tax return. 

 

To enter your 1099-G info, please follow the below instructions:

  1. Sign in and open or continue your return.
  2. Select Federal and then Wages & Income.
  3. Scroll down and choose Unemployment and then Unemployment and paid family leave.
  4. Follow the instructions to enter your info.

Regarding the adjustment to deduct your unemployment on your state return, please just enter the number as a positive, without the negative ("-") sign in front of the number. 

 

@ant943

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