Error on Sch 1, Line 8 Worksheet (Unemployment Compensation Exclusion)

[krystal]

It seems that there is an error on the Sch 1, Line 8 Worksheet for the Unemployment Compensation Exclusion.  This Worksheet should look like the worksheet published by the IRS.

The IRS Worksheet step 2 says:  Enter the amount from Schedule 1, lines 1 through 6.  Don't include any amount of unemployment compensation from Schedule 1, line 7 on this line.

However, the Lacerte Worksheet says:  Form 1040, lines 1 through 7 and Schedule 1, lines 1 through 7.

If you include line 7 from Schedule 1, you will include unemployment income.  In some cases, this is causing a qualifying individual to not get the $10,200 exclusion.

[George4Tacks]

There was an update today that I THINK fixed that problem. https://www.caltax.com/news/flash-email/2021-21-irs-has-fixed-incorrect-ui-exclusion-worksheet/ IRS just corrected their worksheet and Lacerte is

[JLTax49]

Where are you seeing this worksheet in the software?

[pamdory · Accepted solution]

Yes, this was corrected with this morning's update!

[pamdory]

Go to Schedule 1, line 8 and you'll see a WKS link to the worksheet.  

Of course it has to be a return with unemployment on it...