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Level 2
October 14, 2021
Question

Unmployment Compensation

  • October 14, 2021
  • 4 replies
  • 12 views

I am working on a 2020 individual return.  The taxpayer's IRS Wage & Income Report show that there was an amount for Unemployment Compensation.  The stated amount is less than the $10,200 exemption amount due to COVID.  How is this reported or is it reported?  Thanks. - D Ford

 

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4 replies

dd4vols
Intuit Community Champion
October 14, 2021

Unemployment compensation is reported to the recepient on Form 1099-G.   Input that information into Proseries on the 1099-G worksheet, and the program does the rest.  I would not just ignore the 1099-G, lots of them have Federal Income Tax withhheld, which could possibly help the taxpayer.

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ljr
Level 9
October 14, 2021

do not ignore it - you did not say what state the taxpayer is in but there are many states (like NY) that did not exempt the unemployment and it is added back and is fully taxa

 

 

 

IRonMaN
Level 15
October 14, 2021

But that's like saying you are going to ignore a 1099B with a million dollars of sales because it nets to a $1 loss.  As mentioned above, some states may still tax the amount, not to mention that there are income limits on the $10,200 deduction.  If someone thought the dollars were important enough to generate a 1099, you really want treat it like it really is important and report it on the return.

Slava Ukraini!
ljr
Level 9
October 14, 2021

also we are supposed to know better and report it. It's bad enough that you get clients telling you OH ! I didn't think you needed that (whatever form). If you get a form give it to me - let me decide if it is important to your tax return or not.