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Level 1
posted Jun 21, 2021 11:47:09 AM

Unemployment Exclusion Not on Form 8582 or Mod AGI Wks

I opened by previously filed tax return and it updated the $10,200 unemployment exclusion from my income correctly.  However, it did not deduct it from my modified AGI on form 8582.  In Mod AGI Wks it shows the full amount of unemployment I received but the line below, "other income" I believe should show the -10,200 and adjust the Mod AGI accordingly but it does not.  The problem is it isn't allowing me to take all of the passive rental property loses I'm entitled to because of the additional income.

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1 Best answer
Level 15
Jun 21, 2021 12:06:53 PM

Go to this IRS website for unemployment compensation exclusion FAQ's - https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs-topic-e-impact-to-income-credits-and-deductions

 

Will this exclusion affect how I calculate certain income and/or credits on my 2020 tax return? (added April 29, 2021)

A1. Yes. When figuring modified adjusted gross income for any of the following deductions or exclusions, include the full amount of your unemployment compensation reported on Schedule 1, Line 7, unreduced by any exclusion amount:

  • Taxable Social Security Benefits (Social Security Benefits Worksheet in the Instructions for Form 1040 and 1040-SR)
  • IRA Deduction (IRA Deduction Worksheet in the Instructions for Schedule 1 in the Instructions for Form 1040 and 1040-SR)
  • Student Loan Interest Deduction (Student Loan Interest Deduction Worksheet in the Instructions for Schedule 1 in the Instructions for Form 1040 and 1040-SR)
  • The exclusion of Interest from Series EE and I U.S. Savings Bonds issued after 1989 (Form 8815)
  • The exclusion of Employer-Provided Adoption Benefits (Form 8839)
  • Tuition and Fees Deduction (Form 8917)
  • The deduction of up to $25,000 for active participation in a Passive Rental Real Estate Activity (Form 8582)

2 Replies
Level 15
Jun 21, 2021 12:06:53 PM

Go to this IRS website for unemployment compensation exclusion FAQ's - https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs-topic-e-impact-to-income-credits-and-deductions

 

Will this exclusion affect how I calculate certain income and/or credits on my 2020 tax return? (added April 29, 2021)

A1. Yes. When figuring modified adjusted gross income for any of the following deductions or exclusions, include the full amount of your unemployment compensation reported on Schedule 1, Line 7, unreduced by any exclusion amount:

  • Taxable Social Security Benefits (Social Security Benefits Worksheet in the Instructions for Form 1040 and 1040-SR)
  • IRA Deduction (IRA Deduction Worksheet in the Instructions for Schedule 1 in the Instructions for Form 1040 and 1040-SR)
  • Student Loan Interest Deduction (Student Loan Interest Deduction Worksheet in the Instructions for Schedule 1 in the Instructions for Form 1040 and 1040-SR)
  • The exclusion of Interest from Series EE and I U.S. Savings Bonds issued after 1989 (Form 8815)
  • The exclusion of Employer-Provided Adoption Benefits (Form 8839)
  • Tuition and Fees Deduction (Form 8917)
  • The deduction of up to $25,000 for active participation in a Passive Rental Real Estate Activity (Form 8582)

Level 1
Jun 24, 2021 8:46:57 AM

Thank you!  That is exactly what it was.