Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

CA unemployment exclusion

lucrecia
Level 3

Hello Y'all, Does anyone know if California conforms with the unemployment exclusion?

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
ljsmith2
Level 3

Be aware that you will need to make an adjustment to the California return. It is already subtracted from income for California purposes, but the exclusion from AGI on the Federal return causes it to be subtracted twice.

View solution in original post

7 Replies 7

Unemployment is not taxable in California.

lucrecia
Level 3

Thank You

0 Cheers
SanBrunoTaxGuy
Level 3

EDD not taxable to CA.

ljsmith2
Level 3

Be aware that you will need to make an adjustment to the California return. It is already subtracted from income for California purposes, but the exclusion from AGI on the Federal return causes it to be subtracted twice.

View solution in original post

SanBrunoTaxGuy
Level 3

No, you let the software handle it so you don't screw up taxable social security benefits.

0 Cheers
ljsmith2
Level 3

I've only done a couple unemployment exclusions so far since the forms release in ProSeries and I have not seen them make the adjustment automatically for Calif. It was carrying over the Federal AGI (already reduced due to Sch. 1, line  8 UCE), then in the 540CA, it was subtracting it again as it usually does. It would not affect Social Security since California does not tax social security.

If you mean the Federal return, yes, I am letting the program do all the work.

lucrecia
Level 3

Thank You.

0 Cheers