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Unemployment Compensation for 2020 not taxable to $10,200 according to the Stimulus Bill

Level 2

How the ProSeries will handle the new provision? The States have issued the 1099 forms and as a matter 
of fact I have already file one of my customers and have included the unemployment in taxable income.
How the IRS and the providers are going to do it, technically how to do it?
Just to ignore the 1099 or what ?


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3 Comments 3
Level 15

Scroll down and find about 50 other people asking the same question in the last few days.  You might find an answer you like. 


Level 2

IRS has given guidance that you put on Other Income line as a negative number up to $10,200 of a single persons and up to $10,200 of a spouse (but no more than each received).  Modified AGI has to be less than $150,000 to allow the deduction.

You are to use the code "UCE" for the description.  I'll try to attach guidance here.Guidance 1.jpgGuidance 2.jpg

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Level 2

Guidance 1.jpg

Guidance 2.jpg

Still waiting for guidance on amending those we've filed already.   IRS is saying to wait for guidance.  Maybe they'll flip it internally (not usual for them to do that but there's hope).

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