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How do I enter the Unemployment exemption on the MA tax return. It should so on Schedule Y on line 9.

abcstepm
Level 1
 
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George4Tacks
Level 15

My guess is that the software knows if they qualify - From https://support.taxslayerpro.com/hc/en-us/articles/1500004451042-State-Conformity-to-the-2020-Federa...

4/2/21 - As a result of a recent state law change, taxpayers with household income not more than 200% of the federal poverty level may deduct up to $10,200 of unemployment benefits from their taxable income on their 2020 and 2021 tax returns for each eligible individual. Federal law allows a deduction of up to $10,200 if the taxpayer’s federal adjusted gross income is less than $150,000. Since the Massachusetts income threshold is different from the federal income threshold, some taxpayers may be eligible for a deduction on their federal tax return but not on their Massachusetts tax return.  **The full amount of unemployment compensation paid to the taxpayer is reported on the return (Form 1, line 8a or Form 1 NR/PY, line 10a).  A deduction under the new provision should be reported on Schedule Y, line 9 . ** Note that that full amount of the unemployment compensation received is included in the calculation of household income for the purpose of calculating eligibility. 


Here's wishing you many Happy Returns
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