Unemployment Compensation Exemption

tscott1205 · ‎03-13-2021

My single taxpayer only had $30,000 of w-2 wages. $10 of interest and $13,000 of unemployment benefits. Total income of 43,010. Can we exclude $10,200 of unemployment benefits from tax.

After working through the 'Unemployment Compensation Exclusion Worksheet" the answer is he has -0- unemployment benefits to exclude.

I thought the correct answer was going to be $10,200 of unemployment benefits to exclude??

qbteachmt · ‎03-13-2021

You were told the worksheet isn't in the programs yet:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/when-will-proseries-upd...

You don't have to Keep Asking your peers every time for the same issue. Everyone here also is watching for updates, so no one knows more than you do until Intuit makes their announcements.

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Don't yell at us; we're volunteers

RollTide68 · ‎03-13-2021

	1040
	Line 1	25000
	Line 2b	3000
	Line 3b	2000
	Line 4b	1000
	Line 5b	100
	Line 6B	1635
	Line 7	36
Line1	Total 1-7	add sched 1-7 also	32771
Line2	Schedule 1 line 8		0
Line3		Add Line1 & 2	32771
		1040
		Line 10b	300
		Schedule 1
		Line 10	250
		Line 11
		Line 12
		Line 13
		Line 14
		Line 15
		Line 16
		Line 17
		Lie 18a
		Line 19
		Line 20	1150
		Line 21
Line 4		Total	1700
Line 5		Subtract Line 4 from 3	31071
Line 6		If Line 5 = $150,000 or more Stop - No exclusion
		If Line 5 = less than $150,000 go to line 7
Line 7	Unemployment compensation paid not to exceed $10,200		10200
Line 8	Unemployment compensation paid to spouse not to exceed $10,200
Line 9				Add Line 7 & 8	10200
Line 10	Subtract Line 9 from line 2 and enter amount on Schedule 1 line 8	-10200

Line 2 (Schedule 1 Line 😎 should not include the excluded amount only what would normally go there...things like other income, gambling winnings etc.. I made the same mistake the first time running through it.

Sample numbers included and it messed up the table when converted sorry.

tscott1205 · ‎03-13-2021

So in my example is the exemption amount 10,200?

rbynaker · ‎03-13-2021

Hey 'Bama,

Your spreadsheet is missing Schedule 1 Lines 1-7.

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

1. Enter the total of lines 1 through 7 of Form 1040 and Schedule 1, lines 1 through 7.

So that Schedule C with $150K of income might disqualify you. 🙂

Rick

RollTide68 · ‎03-13-2021

You are correct it is not on that spreadsheet. Don't know what happened but you are right. Swear it was there last night after three beers and 12 hours sitting at the desk.

🤣

Good catch.