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unemployment side benefits

JHOG
Level 1

Client HOH 1 child $42880 AGI includes $8128 unemployment. removing unemployment by neg amount on line 8 results in EIC of $1115 and reduction of penalty on 8962 of $404.plus the unemployment is not taxable. It just don`t seem right. and I am a liberal.

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2 Comments 2
qbteachmt
Level 15

Which program are you using? I see that Lacerte and ProConnect should roll out their update this Thursday. You can then let the software do the math. That's what you paid for.

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BobKamman
Level 15

You must have been a conservative back in the Reagan era.  Before that, unemployment was not taxable.  It was considered kicking someone when they were down.