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New Member
posted May 14, 2021 11:07:30 AM

Why is Turbo Tax "ADDING" an additional $10,200 under "other adjustments to income" on top of what I already input for my TOTAL unemployment? This is incorrect!!!! HELP

I am in California, unemployment is not taxed at all which turbo tax notes next to my unemployment total, however, it does NOT note that next to the added $10,200 under "other adjustments to income" amount that the system added.

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3 Replies
Level 15
May 14, 2021 11:33:54 AM

turbotax does the adjustment automatically so when you enter the amount manually it resulted in a double up.  remove your manual entry. 

New Member
May 14, 2021 11:49:45 AM

Good news!  

 

I spoke with 3 reps today, three times a charm. He walked me through how to check if it's calculating correctly on the back end, even though it looks wrong on the front end as a consumer (Turbo Tax should fix this!!!). 
 
FEDERAL
  • Go to "tax tools", "tools", "view tax summary" on the left click "preview my 1040" (sorry if your not using this form, your instructions may be different to view this)
  • Click "federal tax summary, scroll to "schedule 1" and "part 1"
    • Line 7 shows your unemployment
    • Line 8 G subtracts the $10,200 that is not taxed for UI
    • Under this see your new total Federal taxable amount (minus the non-taxable $10,200)
CA STATE
  • Then click to "CA tax summary" on left of screen
  • Youll see your Taxable Federal Adjust Gross (they already took out the $10,200)
  • Under that you'll see "Net California Adjustments", this should be the remaining amount $  of the unemployment you received and it should show as being subtracted.
  • Under that you'll see your total Taxable CA Adjusted Gross income (all of your Unemployment should have been subtracted from this total. Mine checked out ok and yours should too!)
 
If you do the math it appears to be working properly. Not sure why Turbo Tax makes this appear that it's adding an additional $10,200 front end, but I hope this helps explain on the back end and how you can double-check it! 

 

Level 1
May 17, 2021 2:59:33 PM

That's so strange - I used your advice to check my tax summary and preview my 1040 (HUGE THANK YOU for the advice on how to find that!) and somehow my CA adjusted gross income is higher than my federal earned income... or federal adjusted gross income.... which makes no sense to me. It doesn't zero out my AGI in the 1040 preview, but at least I can see my state TAXABLE income appears to zero out, so I'm hoping it's all good. 


Seriously, thank you so so so much for writing out those steps for finding the tax summary and 1040 preview - turbo tax's search function has been down due to some glitch/everyone trying to file in the last days, so I would never have figured it out if it weren't for you!