Question
Should the $10.2K Unemployment exclusion change the California State income tax results when the state doesn't tax Unemployment?
The way ProSeries is solutioning the Unemployment exclusion is by entering a matching negative amount in "Other Income" on Form 1040 Sched 1. On the California state CA form the appropriate amount is listed in column "B" subtracting the unemployment income. However, also listed in column "A" on the CA form is the matching negative entry under "Other Income" reducing the California taxable income even further (with no column "B" adjustment entry).
Is anyone else seeing this? Am I correct? Is this an error? Should I manually correct the state return eliminating the negative "Other Income" entry ?
