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Level 3
March 12, 2021
Question

How do we handle the exclusion of 10,500 in taxable unemployment on the 2020 returns. My client is under the 150k AGI for MFJ.

  • March 12, 2021
  • 2 replies
  • 5 views
My understanding is that the first 10,500 is not taxable on the federal return.
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2 replies

IRonMaN
Level 15
March 12, 2021

You are going to get your clients in trouble if you are going to give them an extra $300 deduction once the forms are ready.

Slava Ukraini!
qbteachmt
Level 15
March 12, 2021

"the first 10,500 is not taxable on the federal return"

Uh, nope.

It's not that amount and it's not a straight across computation of exclusion, either. It affects other things that also compute.

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