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Level 5
March 19, 2021
Question

Unemployment Compensation Exclusion and State of California

  • March 19, 2021
  • 7 replies
  • 41 views

So, with the new update of UCE for Federal, everything look good. But with State of California, We still need to add $10200 back in other income?

Best, 

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7 replies

Level 4
March 19, 2021

Check your CA income.....its already non taxable.

AnhNgocAuthor
Level 5
March 19, 2021

But when we deduct on fed sch 1, it will double deduct in CA 540.

Level 4
March 19, 2021

Sounds like CA may need a software update as well 🙂

Level 2
March 19, 2021

Yes , we need a California Update because of the reasons below our counters have mentioned, we have come with remedies to try to increase the income after the update for federal reduce the adjusted gross income in the state return 540 line 13 comes in bad adjusted. This is giving a wrong refund to clients and will occasioned numerous letter from state in the future if you or I file these returns and angry customers.

Proseries, please help in this matter. 

and or let me know if this is ok to file state returns because I believe here there is something wrong.

AnhNgocAuthor
Level 5
March 19, 2021

Even thought we add back UCE to others income, it also make CA calculate wrong in EITC and after that the $600 CA stimulus. Because EITC in CA base on Fed AGI but when we add UCE back, it just add back to CA Adjust.

This year CA will send out a lot of letter and we may have more a lot of works.