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Level 2
March 20, 2021
Question

ProSeries Update for Unemployment calculation

  • March 20, 2021
  • 11 replies
  • 24 views

The update to the Federal 1040 for the Unemployment calculation is flowing through to the Hawaii State Tax calculation, however Hawaii as not issued a decision as to the conformity with this change. No warning appears on the Hawaii State forms regarding this. I am wondering if returns for other States have a similar situation and what Intuit's plans for addressing this are.

 

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11 replies

IRonMaN
Level 15
March 20, 2021

The update fixed the federal but you are on your own figuring out if you need to make a state adjustment 

Slava Ukraini!
CherylleAuthor
Level 2
March 20, 2021

I don't know whether to laugh or cry at your response, but thank you.

IRonMaN
Level 15
March 21, 2021

It's just the icing on the cake to celebrate a fun filled tax season 🎂

Slava Ukraini!
Level 8
April 4, 2021

I don't know whether you are based in Hawaii or doing the returns from out of State. I can tell you this:

Hawaii was going to pass a bill to waive tax on unemployment until the American Recovery bill put a line in that said if any State took the latest round of federal stimulus monies they could not waive state UI taxes.

The Feds are overstepping their authority but Hawaii govt backed off and other States have sued over this issue.

What I don't understand is:

If the Feds gave Hawaii stimulus money that covered UI payments how can Hawaii tax the 10,200 that the Feds are waiving.  This wasn't Hawaii's money to begin with. I would to enter the amount in other Hawaii subtractions to back it out but don't know will happen if I do.

I will try to reach someone in the tax office. If I get a response i will post it.

Hawaii has also not extended the filing date for the returns. This also doesn't make sense because you have to prepare the Fed return in order to prepare the Hawaii return. But then again....I can't think of one thing this State Government has done that makes any sense.

qbteachmt
Level 15
April 4, 2021

"until the American Recovery bill put a line in that said if any State took the latest round of federal stimulus monies they could not waive state UI taxes."

Could you put the link to this or copy that section, please. Montana already excludes all UI, as do some other States. They didn't change their rule based on anything like that condition.

Don't yell at us; we're volunteers
Level 8
April 6, 2021

Read the law. It is in the paragraph related to the 10,200. waiver on UI payments