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I have a client who received unemployment benefits in January 2021 for unemployment weeks in December 2020 (two weeks in arrears) and reported on the 2021 Form 1099-G. She did not claim UC benefits in 2021. Based on reading the instructions, it would appear that the benefits would have had to have been paid/received for eligible weeks in 2021 in order to qualify for the 133% household income on the Premium Tax Credit line 5 of Form 8962. If the UC benefits were received in 2021 but for 2020 UC weeks, should the 133% household income and resulting credit still apply? Thanks for any thoughts!
Just-Lisa-Now-
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♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Yes, they do have a 1099-G but the benefits weeks were in 2020. It seems that technically the benefit weeks need to be in 2021.
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It sure seems like that it the correct interpretation, however, Proseries doesn't let me override the unemployment benefits in 2021 checkbox or the 133% household income. Thanks for the input!
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Rick, out of curiosity, does Drake have an option to disallow it (or to allow it if the payment wasn't made until 2022)?
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@TaxGuyBill wrote:
Rick, out of curiosity, does Drake have an option to disallow it (or to allow it if the payment wasn't made until 2022)?
I don't see any way to do this return correctly in Drake.
It is a fairly fringe case though and I'm sure with an email to support they would write a patch. All they need is a checkbox somewhere to turn off the 133%. I even tried skipping the 1099-G and entering directly on Sch 1 Line 7 but that still triggered the 133%.
