Another change happened to the IRS unemployment compensation exclusion today. Now, when computing the $ 150,000 limit on income in order to exclude the unemployment compensation, you exclude the unemployment compensation itself from the calculation (see the link to the article). https://www.msn.com/en-us/money/taxes/the-irs-just-made-more-people-eligible-for-an-unemployment-ben...
So if my client's adjusted gross income amounts to a total of $ 152,000, and $ 9000 of this was unemployment compensation, in computing the $ 150,000 limit, my clients would considered to have received only $ 143,000 in total adjusted gross income. Ultimately, this means they can exclude the unemployment compensation of $ 9000 from the total income, and my client's adjusted gross income will be $ 143,000. The problem is that if I put in a negative $ 9000 on Schedule 1, line 8, this gets doubled on the return, because now my client's income is under $ 150,000, and the the prior change to the program gets applied resulting in $ 18,000 being subtracted from total income.
I know this IRS change just happened today but I don't see anything on this website and didn't get any email alerts about it. Will a new workaround be developed for this?
