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7202 CREDIT COVID VS UNEMPLOYMENT BENEFIFT

HOPE2
Level 8

Hi to all.

I am going to file Form 7202 for a new client to claim the COVID-19 credit on her 2021 1040-X. She received unemployment benefits from the California Employment Development Department (EDD) during this period. I am wondering if she is eligible to take this credit even if the period during which she received EDD benefits is different from the COVID credit days claimed on Form 7202. Additionally, I believe there should be no issue regarding her child's school being closed. Please correct me if I am wrong.

Thanks for your help!

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3 Comments 3
qbteachmt
Level 15

The EDD is for specific dates, not for the dates it was received but the eligible dates that would be covered. In addition, if there is a W2, it should have amounts on it that coincide with the provisions. The last point I will make is that it also depends on the State, as you can see in this topic:

https://accountants.intuit.com/community/lacerte-tax-discussions/discussion/can-i-claim-a-credit-for...

 

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TaxGuyBill
Level 15

It is actually the reverse - she is eligible to claim the credit but claiming the credit usually disqualifies her unemployment.

Whether or not the State notices or does anything depends on the State and the specific facts and circumstances.

sjrcpa
Level 15

HOPE said California. I don't think they let anything slide.


Ex-AllStar