Unemployment Compensation Exclusion effect to California EITC - Do we need to amend !

[AnhNgoc]

Unemployment Compensation Exclusion will reduce Federal AGI. Some of my client will qualify for California EITC (their income go below $30,000 after exclusion) and after that they may get $600 California stimulus. 

Do I need to do CA amended ?

Best,

[Just-Lisa-Now-]

You need to add the excluded UI back to the CA return, otherwise the UI is being deducted twice, since CA excludes it already.

[Just-Lisa-Now-]

You add it back like this

[AnhNgoc]

Thank you Lisa!

So, would you please you instruct me how to file the right way with UCE by pro series for Federal & California right now. We need to wait for Pro series update to file UCE or we just manually deduct UCE amount in the Other Income Statement with Federal and add it back to California?

Thank you!

[jjy]

I would like to ask the same question as my client will be in this situation.

Do we amend the CA return?

Adding back the UI exclusion may affect the CA AGI but the CA EITC has to do with Federal AGI which will be affected by this UI exclusion (fall below $30,001).

Thanks!