California Unemployment

[David Stone]

Congratulations to ProSeries for fixing the $10,200 on the Form 1040. 

Issue: ProSeries correctly takes the unemployment off of the California return BUT does not add back in the $10,200 that we said was not taxable on the federal side. This is leaving my CA taxable income off by $10,200. 

ProSeries Customer Service, what is the solution to fix this? What is the solution to the 20 that we pushed through last week, wrong? How many of you have trusted ProSeries to compute this correctly when they implemented this last week? 

[LotusAccountancy]

 I have waited for this to be fixed for three days.

[Just-Lisa-Now-]

Ive been making the adjustment on 540 Sch CA, Line 8F and adding back whatever was excluded from federal.

[BobKamman]

The Intuit Terms of Service state:

Instant Gratification.  If retroactive legislation is passed in March, we do not guarantee that customers will have updated software for all 43 states within a week, especially if even IRS can't figure out how it works for two weeks.  However, we will assume customers have average IQ and will be able to make adjustments to state returns with a few keystrokes.  If states do not update their software to accept such changes, we assume no responsibility.  

[BobKamman]

@Just-Lisa-Now-  "Ive been making the adjustment on 540 Sch CA, Line 8F and adding back whatever was excluded from federal."

Wow!  You must be really smart!

[Just-Lisa-Now-]

I missed the CA adjustment on 1 of them yesterday, I had a bad feeling last night that I missed it, sure enough this morning when I came in, yep I blew it...not feeling too smart today.

[JETT]

David,

EDD is never taxable for California, only on the Federal Return. The GOVT just allowed up to $10,200, to be tax free on the Federal Return.

If you have already filed tax returns before this GOVT decision, IRS says DO NOT FILE AN AMENDMENT, they will correct it on their end and issue the refunds.

[Just-Lisa-Now-]

but CA starts with the fed AGI and deducts ALL the UI, but now the fed AGI also has up to 10200 of UI excluded, which makes the excluded amount a double deduction for CA.

[LotusAccountancy]

Yes, CA will double count the exclusion if proseries does not fix it.