Unemployment exemption income/Sch K1 int

[lourdes1040]

Hello,

- With the new stimulus passed, it states that $10,200 of unemployment income would be excluded from being taxable for the 2020 tax returns. What form would I use in order to report that on someone's taxes? I am trying to find out where to report that so that someone does not get taxed on $10,200 of unemployment income.

-  Someone has a Sch K1 partnership and I am filling out Form 1065. I get up to Part II Disposition of Partnership Interest, and it says to check box 1 in order to proceed, but the thing is that there is no Interest present and ProSeries does not give me an option to state that there is no interest. Even if I try to continue without checking box 1, it does not allow me to do so. 

Please help me with these questions. 

Thank you!

[qbteachmt]

@lourdes1040 

The bill just signed into law doesn't read like you stated it. You need to wait until the programs are updated per the IRS instructions not yet issued, for the Unemployment consideration.

Your client that got a K-1 from someone is not what you use to prepare a 1065. Someone used the business info to prepare a 1065 and issued that K-1 to all parties having an Invested Interest in the Entity. Or, you are the preparing the business tax return and it is 1065 because it operates as Partnership/Members. That means you are misunderstand what Disposition means?

Are you an experienced tax preparer or is this new to you?