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Level 3
April 11, 2021
Solved

New York State IT-558 Worksheet Unemployment Exclusion Allocation entry amount

  • April 11, 2021
  • 21 replies
  • 87 views

Looking for clarification of entry of New York State IT-558 worksheet A-011 Unemployment exclusion "NY State allocated of above" entry. 

If program shows full exclusion on A-011 of $10,200 is NY allocated amount $10,200 or $0 ???

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Best answer by Camp1040

So you are filing a IT-203 part year and not a IT-201 resident?


No exclusion for NYS so enter zero, even part year resident all NYS issued unemployment is taxable to NYS.

21 replies

Level 5
April 11, 2021

You pay tax on unemployment in N.Y State, all of it no exemption.

Level 2
April 12, 2021

My NYS clients that have up to $10,200 of unemployment excluded on the 1040 also have it excluded on their  NYS return.  This exclusion is contrary to New York States Tax Department notice which states that NYS is not excluding $10,200 of unemployment compensation. 

Who programmed the NYS forms to exclude the unemployment compensation?  This is wrong and must be reprogrammed ASAP.  Does anyone have any information or guidance about when this will occur?

Programming to conform to the federal law should not have been done for the states until we absolutely  heard their official position on the exclusion.  What a mess. 

 

   

 

ljr
Level 9
April 12, 2021

An A code is an add back. NY taxes the $10,200 in unemployment. Proseries looks funny and we will probably have to explain it but you see the unemployment on its own line. Then the federal back out on another line and then the NY Decoupling Add back on form IT-558. It is in 3 places on the NYS return.

PeterKAuthor
Level 3
April 14, 2021

I'm still confused by the worksheet "Ny allocated amount of above" if it should be $0 or $10200

If $0 entry the line 45 income % = 1 If $10200 entry the NY % = 1.4

Camp1040
Level 10
April 14, 2021

Update your software, line 19a smart worksheet will adjust for the UI, IT-588 should not require any entry.

If the federal is completed correctly all the adjustments will be automatic, even adjusting for EIC if the client is eligible.