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Level 3
posted Dec 2, 2020 11:54:28 AM

Is PUA considered earned income?

Is PUA considered earned income for calculating the SGA amount for disability purposes? I understand state unemployment is not. Is that also true with the PUA? Any IRS reference would be appreciated as well.
TIA.

0 5 2299
5 Replies
Level 15
Dec 2, 2020 11:56:20 AM

Stimulus checks are not taxable income.  Unemployment compensation is taxable income on your federal tax return and on some state tax returns.

 

Unemployment compensation is taxable on your federal return.  Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment

You might need to get your 1099G from the state’s unemployment site.

 

STATES THAT TAX UNEMPLOYMENT BENEFITS

 

AZ, AR, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, ME, MD, MI, MN, MS, MO, NB, NM, NY,NC, ND, OH, OK, OR, RI, SC, UT, VT, WV, WI

 

 

 

Unemployment compensation is taxable on your federal return.  Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment.  You might need to get your 1099G from the state’s unemployment site.

 

STATES THAT DO NOT  TAX UNEMPLOYMENT BENEFITS on the state return

 

AK, CA, FL, MT, NH, NJ, NV ,PA, SD, TN, TX, VA, WA, WY

 

 

https://www.thebalance.com/state-income-tax-rates-3193320

 

https://www.thebalance.com/do-i-need-to-file-a-nonresident-state-tax-return-3193323

 

Level 15
Dec 2, 2020 12:42:35 PM

@dvdgarofalo I re-read your question and realized that you are asking if your Social Security disability benefits are going to be affected because you received unemployment compensation.

 

From the Social Security site:

 

https://www.ssa.gov/coronavirus/

 

Will unemployment benefits affect my Social Security benefits?

Date: April 27, 2020

Unemployment benefits do not affect or reduce retirement and disability benefits.

State unemployment compensation payments are not wages because they are paid due to unemployment rather than employment. However, income from Social Security may reduce your unemployment compensation.

Contact your state unemployment office for information on how your state applies the reduction.

Level 3
Dec 2, 2020 12:42:55 PM

Thanks for the reply. I should clarify...

I understand unemployment is taxable as income.

But is it included when calculating Substantial Gainful Activity (SGA) for someone who is disabled?

Level 3
Dec 2, 2020 12:44:14 PM

Thank you! Yes, that is what I am looking for. Our posts crossed. Thanks much for the reference. DG

Level 15
Dec 2, 2020 12:44:16 PM

@dvdgarofalo You and I were posting at exactly the same moment!  Hope the second reply I sent to you helps.