Good afternoon,
I believe that I have just come across an issue and have a question regarding Unemployment Compensation (UC) in California. The recent Federal changes enabled taxpayers to reduce their taxable UC on the Federal return up to $10,200 per taxpayer if qualified. Proseries updated accomplished this by forcing a negative $10,200 per taxpayer on Schedule 1 Part I #8 Other Income with a remark "UCE". Proseries for the California return then forces the negative $10,200 on CA (540) Section B #8 A (Fed amounts) and places it as a California Addition Section C, thus taking the Federal reduction of Unemployment Compensation and adding it back into the California Adjusted Income as taxable income when California doesn't tax Unemployment Compensation.
Any suggestions on how to correct this?
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