Unemployment voting

[Anarchrist]

It looks like the form update for today, 24 March, specifically says the UC benefits are not included in determining the modified AGI for this.

Yes, the irs changed it's position yesterday. https://www.currentfederaltaxdevelop...t-compensation

[BP.]

Is the $150,000 threshold with or without the UI benefits?

You include the WHOLE UI to determine if the taxpayer has less than $150,000

if the taxpayer's income, including UI, is $150K or above, not over $150K, they get no UI reversal. It is cut & dry.

It looks like the form update for today, 24 March, specifically says the UC benefits are not included in determining the modified AGI for this.

[Rapid Robert]

FWIW - The IRS posted FAQs - FAQs are not official guidance so take as you wish

Previously noted in a different thread as well.
https://forum.thetaxbook.com/forum/d...119#post305119

While the instructions may work for paper filers, your tax software undoubtedly will not yet provide the correct notation for Schedule 1 Line 8, so still need to wait if efiling. And as others have mentioned, the state tax return may need an adjustment as well, to either duplicate or undo the federal change.

[New York Enrolled Agent]

FWIW - The IRS posted FAQs - FAQs are not official guidance so take as you wish

New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service (irs.gov)

[BOB W]

Another question, does the 10200 unemployment offset affect the gross income for EITC?

All you questions will probably have NO conditions. AGI will be what it is for all other calculations..........

[BOB W]

In 2009 there was a line where you just added the excess over $2400 of UI. I can't imagine a redo of page 1 of 1040 at this late date for a one time adjustment.

[ToledoEd]

Another question, has any state said if they will allow the deduction or add it back?

Too many ifs to try and jump the gun before seeing actual IRS and State answers. Use the negative entry to give your clients an idea of where their taxes may be, but stress that the rules are not IRS finalized yet.

[ToledoEd]

Another question, does the 10200 unemployment offset affect the gross income for EITC?

[BOB W]

This is great news for those borderline tax returns. Now just need to see actual IRS statements for this and reporting guidelines.

[ATSMAN]

Just saw a post on another site that IRS will use the same logic like the $2400 UI exemption in 2009. So basically if you deduct UI up to10,200 and then check AGI and if it is within the range the match should be ok. Obviously a changed AGI will have collateral effect on other calculations. To make matters even more complicated repayment of Advance PTC is waived. So a return with both UI and PTC will look completely different. I have one client in that situation, that I am holding off.

[Anarchrist]

who is shooting who in their foot?

The one jerry-rigging returns, thus most likely guaranteeing problems down the road.

[BOB W]

Humm... who is shooting who in their foot? No comment? Humm...

[BOB W]

Since you never said that, of course I missed it. You did use the nonsensical phrase "boarder line issue", but stated nothing about waiting for returns with income close to $150K. I have a walker you can borrow if you need it after shooting your foot.

Check post 29

By the way, Since that post more info has been posted.

[Anarchrist]

WOW... I guess you missed the part where I said that the boarder line incomes will have to wait for updates to come.

Since you never said that, of course I missed it. You did use the nonsensical phrase "boarder line issue", but stated nothing about waiting for returns with income close to $150K. I have a walker you can borrow if you need it after shooting your foot.

[BOB W]

WOW... I guess you missed the part where I said that the boarder line incomes will have to wait for updates to come....Over $150,000 was never questioned except when UI caused 150,000 +.

Hey! It's my foot...