UNEMPLOYMENT COMPENSATION IS NOT TAXABLE WITH CALIFORNIA, WHY ON FORM CA(540) THERE IS UCE SUBTRACTION, THEN ADDITION OF UCE AGAIN? PLEASE EXPLAIN, THANKS

Forum|Forum|5 years ago
April 23, 2021
2 replies
16 views

Schedule CA, column B: it said: treated as a positive number if the amount is negative. What does it mean? Of course the UCE is negative because of the $10,200 non-taxable UI per IRS

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Just-Lisa-Now-

Intuit Community Champion

California excludes total unemployment.

But CA starts with the Federal AGI which already has up to 10,200 already excluded from it, so it needs to be added back or youd be deducting the excludable federal portion twice.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

BobKamman

Level 15

If you've answered this question once, you must have answered it -- well, at least twice, but maybe closer to a dozen times. And every time I read your answer, I want to ask "but where does it get subtracted out again?" Because someone who has to ask, may not be able to find the right form and line number.

qbteachmt

Level 15

"treated as a positive number if the amount is negative. What does it mean?"

It means the field is already dealing with Subtractions or reductions, so don't also make a negative entry.

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