UNEMPLOYMENT EXCLUSION

[coupons]

MY UNDERSTANDING IS THE $10,200 EXCLUSION IF FOR MFJ AND AGI IS LESS THAN $150,000 AND SINGLE IS AGI IS LESS THAN $75000.  CAN YOU FILE MARRIED FILING SEPERATE AND USE THE $75000 AGI FOR THE TAXPAYER.  I HAVE A SITUATION OF A MARRIED COUPLE SHE MADE $98,000 AND HE MADE $58000 INCLUDING UNEMPLOYMENT.  CAN I FILE SEPERATE AND GIVE HIM THE UNEMPLOYMENT EXCLUSION. 

[Just-Lisa-Now-]

Im not seeing where it shows that the 150k needs to be split for single. These IRS instructions dont mention Single or Married...can you provide a link to that information?

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[BobKamman]

you are confusing this with the $75,000 limit on economic impact payments.  so far irs has admitted that the $150K applies to both mfj and mfs returns, although watch for an announcement next friday night that they have changed their mind.  

[qbteachmt]

This isn't correct: "MY UNDERSTANDING IS THE $10,200 EXCLUSION IF FOR MFJ"

It's $10,200 per each person on a joint return who collected unemployment. That means if one of them only got $8,000 UI and the other got $15,000, the other does not get to use the $2,200 difference and only has $10,200 excluded.

[PATAX]

👍 QB sounds like he is correct again... Doesn't appear to be a real complicated matter to me, just my opinion...

[Accountant-Man]

caps lock works.

[jgm6520]

I think you're correct but the real question is how do you give individuals or couples the credit? Are we going to get another version of the 1040?

[Just-Lisa-Now-]

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@jgm6520 wrote:

I think you're correct but the real question is how do you give individuals or couples the credit? Are we going to get another version of the 1040?

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I dont understand your question....the IRS issued guidance on how to apply the exclusion, no extra forms or 1040 change needed.

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[moore1]

There is no worksheet for line 8. Are you just going to put UCE and a negative number for the exclusion on line 8? Or will proseries add a unemployment compensation exclusion worksheet like the instructions issued by the IRS? 

[Just-Lisa-Now-]

The worksheet just totals up the income included in that 150k limit...if your client is nowhere near the 150k mark, no worksheet needed.

[moore1]

So this will exclude it from the Ohio and school district income. Have they determined they will follow the federal mandate and exclude the first $10,200 as well?

[Just-Lisa-Now-]

You'll have to look to your state for guidance on how they will handle it.

[tctxldy]

I think the question is...Will the tax program (Proseries) be making any updates to deal with this unemployment compensation situation or are we just to do it manually?