Step 1 IRS Guidance on $10,200 nontaxable unemployment

Sjr thank you for the link... I also give credit to the IRS for quickly taking care of this matter....👍

That was pretty quick with the guidance from the IRS. I'm impressed!

Do you have to amend 2020 already filed?

Thanks for the link. I hope the search engines find it, too.

Good timing.  I just finished a return with unemployment.  Now I'll just have to see how I back off the reduction for MN.

Thanks for posting. 

Had a long day here

But are we waiting for Proseries software update for the exclusion?  

What they are saying is that the $150K figure includes unemployment, even if it's what puts the taxpayer over the $150K mark and would otherwise be excluded.

I'm not sure that's what the law says.  It creates a new Section 85(c) that says Section 85 is to be disregarded when determining modified AGI.  Does that mean disregard the requirement that unemployment be included in income?  Or disregard the possible exclusion?

Can someone tell me why IRS is taking the long way around the barn for this? What is the difference between their 10-step program, and my two steps?

Step 1: Complete your return showing all of the unemployment you received. If the AGI on Line 11 is more than $150,000, STOP. You do not qualify for the exclusion.

Step 2: If AGI on Line 11 is less than $150,000, go back and subtract the unemployment received, up to $10,200, by entering it as a negative number on Line 8 of Schedule 1. On a joint return if both spouses received unemployment, subtract the unemployment received up to $10,200 for each. Write “R.I.P.” on the dotted line to the left of Line 8.

Hi 

The IRS article refers to Line 7 and Line 8, and Line 8 on the tax form is "other income."  So where do we enter the exclusion amount in Pro-Connect?  Just go to "other income?"

Thanks.

Janet