Shedid
Level 3

I didn't say that Lacerte was working differently. It sounds like Lacerte is working the same in both of our cases.  It's splitting the unemployment 50/50. And it's excluding UP TO 10,200 on each of their returns.

  I don't disagree that the unemployment compensations gets split 50/50 in a community property state.  I am just not sure on the rules for the allocation of the exclusion since there has been no IRS guidance on this for MFS in community property states. The way Lacerte handles it, the couple is getting to exclude more than if they were MFJ (if my clients weren't over the 150k).

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