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

[M Tax]

When will RI be updated to reflect the exclusion of the $10,200 of Unemployment Compensation?

[DoninGA]

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@M Tax wrote:

When will RI be updated to reflect the exclusion of the $10,200 of Unemployment Compensation?

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Rhode Island taxes the full amount of unemployment compensation received.  It does not exclude any unemployment compensation from being taxed.

[KimCO]

RI legislation rep Charlene Lima wants to make $10,200 exclusion for unemployment compensation.  This may be addressed at this week’s session.  Knowing RI, don’t hold your breath. You may want to cross your finger and wait a couple of weeks before filing RI return.  Reference: http://www.tax.ri.gov/

[KimCO]

I would say yes to your question.  I’m in same situation.  IRS will adjust any overage, and then reimbursement you.  That is, only if you don't owe IRS for previous year. Royal PIA!

[John Lewis 07]

when will update of new excision up to 10200 of unemployment compensation be ready to download on my turbo tax

[John Lewis 07]

when will update of new excision up to 10200 of unemployment compensation change my North Carolina taxes

[DoninGA]

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@John Lewis 07 wrote:

when will update of new excision up to 10200 of unemployment compensation change my North Carolina taxes

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North Carolina does not follow the federal unemployment compensation exclusion.  All unemployment compensation is taxable on a North Carolina state income tax return.

[helen_feddema]

NYS Senate Bill S5125A still in committee today (April 16).  For what it's worth, a news anchor on Spectrum News (NYS) said that NYS would be collecting tax on Unemployment.  But if the bill passes, Unemployment will not be taxed up to the same limit as Federal tax.

[msaaj]

Starting to think that if NY ends up passing it, it will be in the form of a refund like Federal gov't is doing for people who already filed or a reimbursement on next year's taxes.  My gut is it doesn't pass.

[vsimone1950]

NYS DECIDE ONE WAY OR ANOTHER ALREADY!! NOT FAIR TO HOLD UP THE WORKS FOR FILERS.

[helen_feddema]

That's what I am thinking.  Maybe late Summer or early Fall, considering the glacial pace of getting this bill on the floor and passed.  If you are a NYS resident, you can send your state senator a message that you approve this bill at this link:  https://www.nysenate.gov/legislation/bills/2021/S5125

[TS86]

Any word if Ohio will follow the federal unemployment compensation exclusion? Or will our unemployment compensation be taxable?

[PaulaM]

Yes, Ohio is following the federal unemployment exclusion. See this link for reference.

[Hfshockeymom]

Has Turbo Tax been updated to exclude the $10,200.00 in unemployment income? 

[VolvoGirl]

Yes both the Online version and Desktop program has been updated.  

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.

If you have filed. The IRS will recalculate your return for the new unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...