CA unemployment exclusion

[lucrecia]

Hello Y'all, Does anyone know if California conforms with the unemployment exclusion?

[twainhartetaxman]

Unemployment is not taxable in California.

[SanBrunoTaxGuy]

EDD not taxable to CA.

[ljsmith2 · Accepted solution]

Be aware that you will need to make an adjustment to the California return. It is already subtracted from income for California purposes, but the exclusion from AGI on the Federal return causes it to be subtracted twice.

[SanBrunoTaxGuy]

No, you let the software handle it so you don't screw up taxable social security benefits.

[ljsmith2]

I've only done a couple unemployment exclusions so far since the forms release in ProSeries and I have not seen them make the adjustment automatically for Calif. It was carrying over the Federal AGI (already reduced due to Sch. 1, line  8 UCE), then in the 540CA, it was subtracting it again as it usually does. It would not affect Social Security since California does not tax social security.

If you mean the Federal return, yes, I am letting the program do all the work.

[lucrecia]

Thank You.

[lucrecia]

Thank You