Unemployment and GA taxes

Forum|Forum|5 years ago
March 19, 2021
5 replies
20 views

Is Georgia going along with Federal and exempting the first $10,200.00 in unemployment due to the newly passed American Rescue Plan Act?

ProSeries Basic

This topic has been closed for replies.

Best answer by itonewbie

Historically, GA keeps current with conformity dates although some modifications may be required. This time round, however, GA is concerned about how the ARP may infringe upon states' authority to set their own tax policies and has joined other states in seeking clarification from the Treasury. This could have an impact on conformity and the timing.

https://taxfoundation.org/american-rescue-plan-state-tax-cuts-treasury/

J

JoJoAuthor

Level 4

I guess I will answer my own question. After making a call to the State of Georgia I was told no. That means since GA starts with the federal AGI that the unemployment exempt from federal income has to be added back. I called Pro Series support and was told that they aren't going to update the software at this time. I can manually make the adjustment but I thought this is what we paid for. I really wanted Pro Series to verify that I received the correct answer from the State of GA. We all know if you have ever called IRS or their State for answer to a question sometimes it is based on who you connect with on the other line. I did suggest that Pro Series could at least put out a bulletin or update listing the states that are not exempting the $10,200.00 unemployment. That way I would feel safe in making the adjustment manually.

If anyone else knows anything different please let all of us know.

itonewbie

Level 15

@JoJo wrote:

I guess I will answer my own question. After making a call to the State of Georgia I was told no.

And how is that person supposed to know when things are still in the air? I wouldn't be so certain about this.

---------------------------------------------------------------------------------Still an AllStar

J

JoJoAuthor

Level 4

That is why I am so uncertain. Making the adjustment is nothing compared to telling your client you made an error or spending half the summer amending returns. I am basing my assumption on what I was told by a representative at the State of Georgia. That is why I would really like to see Intuit list the states in question, list the states that are or are not agreeing with the ARP. I feel as Intuit has more pull and could talk to someone higher up the ladder than I can.

itonewbieAnswer

Level 15

Historically, GA keeps current with conformity dates although some modifications may be required. This time round, however, GA is concerned about how the ARP may infringe upon states' authority to set their own tax policies and has joined other states in seeking clarification from the Treasury. This could have an impact on conformity and the timing.

https://taxfoundation.org/american-rescue-plan-state-tax-cuts-treasury/

---------------------------------------------------------------------------------Still an AllStar

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