TOPIC: Unemployment Compensation Credit $10, 200 When should I file 2020 taxes to be sure this credit is included?

[TANYA1075]

I have the downloaded turbotax home business, how do I apply the $10,200 unemployment credit

[gloriah5200]

The downloaded home and business version of TurboTax has been updated to apply the unemployment exemption as long as you qualify and you update when you open it.  It will appear on the Sch 1 line 8 in the amount you qualify to exempt.  TurboTax will automatically implement the unemployment exemption on your return.

[ctx192021]

Has the NY State software been updated as well? I noticed that my Fed taxes were adjusted for the Unemployment but my NY State Due/Refund stayed the same. 

Please advise when that will be done.

Thank you.

[ronr32]

That's great news! I know TT is working through making all the state changes as we speak. To keep the TT community up to date on those changes, please create a web page that lists all the states along with the TT software update status of each. TT communication could be improved on this front. thanks!

[ctx192021]

Upon careful scrutiny of my return, even though the federal return is excluding the first $10,200 from the AGI, on the NY State return it appears to be adding it back in. (NYS Form IT-558 Line 9, which appears on line 19a Recomputed federal adjusted gross income).

Is that correct?

NY State is not excluding the tax on the unemployment benefits but the IRS is?

Really?

[Cynthiad66]

At this time New York State remains decoupled from the unemployment compensation income exclusion and an adjustment to income for New York is required.  The Unemployment Compensation Exclusion Addback should be included on Form IT-558 New York State Adjustments due to Decoupling from the IRC and has been designated as A-011.  Per @ChipM6

[ctx192021]

•Thank your answering but I'm sorry, not really understanding what you wrote here:

"...due to Decoupling from the IRC and has been designated as A-011. "

Can you please explain?

•Also, when you say "remains", has NY State made it clear that they will NOT go along with the federal mandate to exclude, or have they just not done it yet, at this time?

[LinaJ2020]

As of today, TurboTax program has been updated for New York.  Select Click on New York

It means NY is separated from the federal ARPA in this unemployment exclusion issue.  Since it is excluded from the federal income, NY will add it back to it's income.  It will be an addback on Form IT-558 New York State Adjustments.  

@ctx192021

[Kjuan01]

Is turbo tax updated to reflect this exemption? What do I have to do, I did not file yet? Every thing is in the system to file but did not send yet. Waiting on how to claim the exemption. Please let me know since I only have a week to file my State taxes.Thank you

[ToddL99]

TurboTax programs (online and desktop) have been updated to recognize unemployment compensation as non-taxable income (assuming you didn't exceed the $150,000 income limit to qualify). 

Just make sure you enter your 1099-G in the "Unemployment and Paid Family Leave" interview of TurboTax - the program will make the correct tax calculations.

See the following screenshot for aid in navigating: