Is there a way to find returns with unemployment income?

[Greg Stewart-Longhurst]

Is there an easy way to identify returns that have been prepared that reported unemployment benefits?  I understand the Senate is close to passing a bill that will exempt the first $10,200 of unemployment benefits.  If it passes, I will want to identify those returns and do some amending.  Thanks

[BobKamman]

They're not as close now as they thought they were a few hours ago.  Still, it's a good to be a Boy Scout Preparer, and Be Prepared.  

[Just-Lisa-Now-]

I havent dug through the Client Query choices...have you looked?

[Just-Lisa-Now-]

Are you keeping watch on this one? You'll let us know if it passes?

[Just-Lisa-Now-]

Good lord, I dont understand how this new Query function works

@Orlando  is there a way to search for all returns that included unemployment or is that too specific since the 1099g is used for several different things?

[BobKamman]

Passes where?  Senate?  House?  White House?

[Just-Lisa-Now-]

If the excludable UI becomes law

[Greg Stewart-Longhurst]

The Senate just made the exemption part of the 1.9 trillion bill they are debating.......a compromise between the parties.........in return for the monthly unemployment benefit dropping from $400 - $300 per month.  Since Unemployment runs out on the 15th, the bill is expected to pass the Senate, again in the House, and be signed by the administration next week.  Since the exemption was added as part of a compromise, I'm guessing it will still be in the bill when it passes.

We've stopped filing returns that have Unemployment Benefits for now.  And I'd like to run a query of some sort to Identify those returns that are finalized but we're waiting on the E-File Form so we can catch them before they are E-Filed.  Making the change before filing will be much easier than filing an amended return.

If it does pass, we'll also need an easy way to identify those returns that will need to be amended.

[Greg Stewart-Longhurst]

From CNBC regarding the excluding of $10,200 of unemployment compensation from 2020 taxable income:
"Senate Democrats reached a compromise on Friday to narrow the scope of the enhanced unemployment benefits in the $1.9 trillion Covid-19 relief package, cutting the benefit from $400 to $300 a week but allowing the enhanced benefits to run through early October.

As part of that compromise, Democrats added language to the bill that would provide a tax waiver on up to $10,200 of unemployment insurance benefits for 2020, staff for Sen. Ron Wyden, D-Ore., confirmed Friday to CNBC Make It.
The amendment which is expected to hit the Senate floor Friday afternoon, ensures that unemployed workers will not face a surprise bill on their 2020 taxes, according to a spokeswoman for Sen. Carper."

This was reported today in The Hill as well.  I guess that means we may know something soon regarding the taxability of those benefits.  Then we'll just need the tax software companies to be able to update their programs.

[Abacus44]

It does not yet appear as a query choice. Hopefully Intuit will be on top of this and add query.

Will also need to know best way to handle these cases:

For returns already filed, will IRS automatically adjust or will 1040-X be necessary. 

For returns in process, will a worksheet be added  or do we adjust on the fly.

[Just-Lisa-Now-]

1040x will be needed, IRS wont do it automatically.

Hopefully we wont have to wait for a program change, we can just use a negative on the Other Income line.

[BobKamman]

That was such a long time ago.  

[Orlando]

If you can see it in HomeBase view, you can query on it / filter it.  I know there's a ton of columns you can add to a custom view, but I don't know what they all do.

Can you email a screen shot of a view that has some examples of the data you want to filter on? If so I can suggest a query.

[Greg Stewart-Longhurst]

Can't see it in Homebase View.  Is not an option.  Wish it were.  It would be easy then.

Need to know if there is an amount on Schedule 1 Line 7, Unemployment Compensation.

[PATAX]

In my opinion this is absolutely ridiculous. It is March and they may pass something and make it retroactive. Millions of returns have already been filed. This is nonsense.... if they wanted part of it to be non-taxable, they had plenty of time before 2021 to make this part of the tax code...just my opinion....

[Greg Stewart-Longhurst]

They've put the IRS thru enough hell the past year.  Now this.  AND the higher and paid in advance Child Tax Credit.  Can you imagine any of your clients being able to tell you how much advance credit they received over the year?  Or if they even did?

I usually don't stand up for the IRS.  But, wow.  Enough is enough already.

Maybe if Congress would stop doing stuff like this, the IRS would actually process my client's refunds from last year..................

[Abacus44]

Unemployment benefits received is NOT a field on the Homebase view

[PATAX]

You hit the nail on the head Greg... These arrogant politicians do whatever they want and they could care less who gets left with the mess...just my opinion...

[Orlando]

Got it. I will check with the team that owns the Client Analyzer Queries.. I have no idea what adding new ones looks like.

[JSK]

I looked, but didn't see anything for unemployment.  If anyone else checked & I just missed it, please let me know.

[taxbiz2511]

Orlando- It is reported to the recipient on a 1099-G

[Orlando]

Got it. The team is swimming in all these recent changes, but i believe they will be adding a relevant report  in Query Analyzer as part of the release to address. I can't commit though since it's another team and they are juggling a ton of stuff.

[Just-Lisa-Now-]

lots of other things use the 1099G too, so thats no good....we need a search for Line 7 of Sch 1

[Abacus44]

Another consideration on how and where the adjustment is made is that reduced income may result in the EIC being calculated. What will IRS position be on how this affects the EIC? 

[Just-Lisa-Now-]

nobody knows yet

[jazmiecorpus]

I couldn’t find a way in the home base query. Hopefully Proseries updates this feature.

[taxgirl0216]

Does anyone know when ProSeries will be updated to calculate the $10,200 exclusion?

[Just-Lisa-Now-]

IRS already gave instructions to do this, no update needed.
https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[taxgirl0216]

I am a little confused. Where can I find the unemployment exclusion worksheet in the software?

[jazmiecorpus]

There is not an exclusion worksheet. 

We need to enter a negative amount which needs to be excluded in the unemployment income in Schedule 1, line 8. You would have to make the adjustment on the "Other Income" line 24 and identify the negative amount at "UCE" on the blank description line.

For California, the adjustment on line 8 causes the CA AGI to be understated so we have to manually adjust the CA return on Sch CA. We make this adjustment on the "Other Income" line 28a as an addition. Identify the addition as "UCE Adjustment from Federal Return."