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Do you find that Arkansas is trying to back out unemployment that was never taxed with the new UCE using ProSeries?

Thfcpa
Level 1
 
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DianaS
Level 2

Heads up!!  There are two errors in AR ProSeries for the unemployment exclusion.

1) Unemployment is being deducted without ever being added in.  So in the most simple example, an AR taxpayer with a W2 of $20,000 and a 1099G AR unemployment of $6000 shows $14,000 taxable income in ProSeries.  I am overriding the deduction in ProSeries so that the W2 amount is taxed.  

2) Also, in Arkansas, the entire unemployment amount should be excluded, yet ProSeries is only trying to exclude $10,200 (the Federal exclusion).

 

DaleKing
Level 1

I noticed the same thing.  However the full amount is actually not taxed, that was fixed prior to the decision not to tax federal.  

Since correction on federal, the state continues to figure unemployment not being taxed, but then subtracts from the adjusted income the amount of unemployment that is not taxed by the Federal.  This causes a great deduction in taxes owed to the state.

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DianaS
Level 2

Exactly!  That is what I was attempting to say, but you said it better.  Thank you!

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