New Exclusion of up to $10,200 of Unemployment Compensation

[helen_feddema]

You are probably right, but hopefully at some point (maybe midsummer) the bills will pass the state Assembly and Senate, and at that point I hope to get a refund of the tax I paid already (similar to the Federal refund).

[oliviachristian]

When entering the amount on my 1099G do I deduct the 10200.00 .

[VolvoGirl]

No it is automatic.  If you have unemployment you can exclude up to 10,200 if your income is under $150,000.  The exclusion will be on Schedule 1 Line 8 as a negative number. Your unemployment compensation will be on Line 7 of Schedule 1. The result flows to Form 1040 Line 8.

[TMS70]

Dependent Confusion ---  My daughter is in college and received unemployment in 2020. I did her taxes at the end of February and it said she owed $1,800 in federal taxes (which she already paid). However, I hadn't submitted her State taxes yet. I just went in to print the state forms and both of her numbers are now different. It now says she should get a little over a $1,000 federal refund (instead of owing) and her state is a couple hundred more.

I don't know if these new numbers are accurate. She definitely made less than 150K, but we claim her as a dependent and our AGI is slightly over the 150K. I assumed the "150K per household" meant she would be excluded from the 10,200 tax benefit, but Turbo Tax doesn't ask for our AGI on the worksheet (just her income). How does the 150K work for dependents? Does the 10,200 still apply to her?

[apple7351]

@DoninGA 

Thank you so much for your reply! However you will have to forgive me for asking the following, as I am a total tax and financial dummy...

When you are referring to "schedule 1 line 8" or "line 7 of schedule 1", where and what are you talking about? I haven't seen anything labeled schedule or line in the TT program, nor on my 1099-G form. Are you saying there's some other form from the IRS I have to be filling out in addition to TT?? I'm sorry I'm so confused.

"The result flows to Form 1040 Line 8"... again, you'll have to explain like I'm 5!

I humbly thank you for your help.

[VolvoGirl]

Turbo Tax will fill out any schedules you need.  Here is IRS Schedule 1.  It is part of your 1040 tax return.  

https://www.irs.gov/pub/irs-pdf/f1040s1.pdf 

Are you using the Online version?  Before filing,  You can preview the 1040 or print the whole return

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

[VolvoGirl]

@apple7351  If you are using the Desktop CD/Download program you can switch to Forms Mode and see the 1040 and any Schedules and forms it filled out.  Go look around.  Click Forms in the upper right (Windows) or left on Mac.  

[apple7351]

Yes I'm using the downloaded version. Ok so as long as TT will do it for me and there isn't a separate form I need to be filling out, that helps a lot.

Thanks for your help!

[Greg2]

Thanks for that info, i found on Schedule 1 and the negative amount is there

🙂

[helen_feddema]

NYS Senate Bill S5125A still in committee today (April 12, 11:15 AM)

[Erilflynn]

Helen what exactly does “still in session” mean?  I mean I know what it sounds like but the NYS budget is finalized so Ifind it difficult to believe they’re still debating this.  Thank you for your updates though.

[iceman99]

I already filled my return back in march before the exclusion and I owed money. I e-filed the return but haven't sent my payment in yet. My question is do I pay what I owe and hopefully get a refund in the summer or wait ?

[gt1212]

thank you

[JoeTeixeira]

has the IRS FIGURED HOW WE DEDUCT THE $10,200 EXCLUDABLE AMOUNT FROM UNEMPLOYMENT COMPENSATION

[VolvoGirl]

Have you filed yet?  Turbo Tax has been updated for the exclusion and will give it to you automatically if you qualify.  If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation.  Just enter the 1099G.  The exclusion will be on Schedule 1 Line 8 as a negative number. Your unemployment compensation will be on Line 7 of Schedule 1. The result flows to Form 1040 Line 8.