Using the "What-If" Worksheet to compare married filing jointly with married filing seperately

[ConfusedInMA]

What line of the "What-If" worksheet accounts for the first $10,200 of unemployment income being tax-free for earners below a certain threshold this year?

I am low earner with almost as much in unemployment income this year as regular wages. My husband is a high earner and we don't have children, education, or mortgage expenses. Using the CD version of Turbo Tax I am trying to compare if it would be better for us to file separately this year, because if our incomes are combined we exceed the threshold for the first $10,200 being tax free.

Where can I look on the "What-If" for to see if it accurately accounting for the fact I wouldn't have to pay taxes on that portion of my unemployment income if we filed separately, but I would have to pay if we filed together? Right now it is showing we would have to pay about $1000 more if we filed separately but I'm not convinced this is accurate if I can't see on the form where it accounted for the first $10,200 being tax free in the MFS scenario.

[AnnetteB6]

Look at line 19 of the What-If worksheet to see the taxable amount of unemployment, before adjusting for the $10,200.  The adjustment for the $10,200 will be shown on line 21 Other Income of the What-If worksheet.

[ConfusedInMA]

Line 19 is filling properly, but nothing is populating in any of scenarios on line 21. This confirms my suspicion that the worksheet isn't deducting the first $10,200 of unemployment. My income is $53,500. $24,600 of that is unemployment. Where should I make a manual correction so that the first $10,200 isn't taxed?

My husband's income is a little over $140,000, so my understanding is that if we file together I have to pay tax on all of the unemployment, that is why I want to see if separately ends up being better for us.

[AnnetteB6]

You can either right-click the unemployment compensation number on line 19 and override the amount there -- reduce it by $10,200.  Or go to line 21 Other Income and enter a -$10,200.  Either option should work to show you the results for the MFS return.

@ConfusedInMA

[ConfusedInMA]

Overriding line 19 works. Entering a negative quantity in line 21 does not work because it forces the same quantity in the spouse's column (which I am pretty sure is wrong if filing separately). MFS does end up saving us money. However, now I am concerned that when I finalize the taxes that Turbo Tax will not account for the $10,200 exclusion correctly. What forms and lines do I need to double check before filing?

[MarilynG1]

@ConfusedInMA  When you Print/View/Save your return, the Unemployment Exclusion will show on Schedule 1, Line 8 as UCE with a -10,200 amount (screenshot).