Unemployment Benefits AGI

[menjivarj]

Hello,

We file our taxes as married jointly. Our combined AGI is about $177K. My husband recieved $19,754.00 of UI Benefits. Are we allowed to subract the $10,200 of UI from AGI, according to the March 2021 ruling? If so, do we just decrease the UI amount of income on the software? 

Thank you,

Sophia 

[xmasbaby0]

No, you do not do any math with the unemployment yourself at all.   You just enter it as it appears on the 1099G and let the software do the calculations.  The software will automatically calculate how much of your unemployment is taxable.

You will have to enter a 1099G that is issued by your state.

Some states will mail out the 1099G.  Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.

Enter your 1099G in Federal>Wages & Income>Unemployment

Go through the screens very carefully, making sure  to enter any federal/state tax you had withheld from the unemployment.

[VolvoGirl]

Sorry no.  You made over $150,000 AGI.  If you qualified the deduction would be automatic.  Just enter the full amount on the 1099G.  

IRS Unemployment Info

https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation