What about States?

I've been manually making the federal adjustment and turning around and making a manual adjustment on MN.  I'm guessing the first step is going to now be automatic but the second step is still going to be manual.  But I guess we'll find out in a couple of days.  For the record, the first stab at MN conforming to the feds bombed, but it sounds like they are going to try again.  Maybe after a few special sessions it might pass, but for now I assume MN is going to be nonconforming.  

Thanks for the update Tax Guy Bill

And what about territories and possessions?  I assume everyone has been following the "Mirror Code" provisions of the new laws that involve rebates, EIC, and CTC.  Come on, Intuit.  American Samoa wants answers, and they want them now!  Not to mention Puerto Rico and the Marianas.  

---

@TaxGuyBill wrote:

Intuit just released this nifty article about the Unemployment, and says "ProSeries will make an automatic adjustment to federal returns that qualify for the exclusion."

https://proconnect.intuit.com/community/form-1099-g/help/generating-the-unemployment-compensation-exclusion-in-proseries/00/143038 

http://yourbooksontime.com/tax-advisors personal tax advisor near me

That is great ... but what is going to happen to the State returns?  I wouldn't think all of the States have things sorted out yet.

I don't know about other States, but my State starts with Federal AGI and still taxes unemployment.  As far as I know, the State has not  released an updated form to reflect this add-back.  Is ProSeries just going to let it flow to the State let the State be wrong?

And what about States that start with Federal AGI or Federal "taxable income" that already have a subtraction for Unemployment?  Is ProSeries going to un-do that subtraction?

 

---

How did you solve the issue?

COLORADO: Colorado taxes all unemployment benefits.

When filling out their 2020 Colorado income tax return, you must add back the amount of any unemployment compensation excluded from your federal taxable income under the American Rescue Plan Act. This amount should be added to Line 6 (other additions) of your Colorado return, along with any other addbacks required by law. In the explanation field, enter "Unemployment Compensation.

ILLINOIS: From the IDOR website

The Illinois Department of Revenue (IDOR) is currently reviewing the federally enacted American Rescue Plan Act of 2021, that includes a retroactive provision making the first $10,200 per taxpayer of 2020 unemployment benefits nontaxable for individuals with an Adjusted Gross Income of less than $150,000. 

IDOR strongly urges taxpayers who fall in this category to not file returns related to these changes at this time. Additionally, taxpayers who received unemployment benefits last year and have already filed their 2020 tax return should not file an amended return at this time.

MISSOURI: I can't find any information currently.

Drake has a nice list, but the main question is what is ProSeries going to do with the adjustments?

https://kb.drakesoftware.com/Site/Browse/17148/State-Conformity-to-ARP-Unemployment-Compensation