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New York State IT-558 Worksheet Unemployment Exclusion Allocation entry amount

PeterK
Level 2

Looking for clarification of entry of New York State IT-558 worksheet A-011 Unemployment exclusion "NY State allocated of above" entry. 

If program shows full exclusion on A-011 of $10,200 is NY allocated amount $10,200 or $0 ???

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Camp1040
Level 8

No exclusion for NYS so enter zero, even part year resident all NYS issued unemployment is taxable to NYS.

View solution in original post

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21 Replies 21
fredr
Level 3

You pay tax on unemployment in N.Y State, all of it no exemption.

MartyC
Level 2

My NYS clients that have up to $10,200 of unemployment excluded on the 1040 also have it excluded on their  NYS return.  This exclusion is contrary to New York States Tax Department notice which states that NYS is not excluding $10,200 of unemployment compensation. 

Who programmed the NYS forms to exclude the unemployment compensation?  This is wrong and must be reprogrammed ASAP.  Does anyone have any information or guidance about when this will occur?

Programming to conform to the federal law should not have been done for the states until we absolutely  heard their official position on the exclusion.  What a mess. 

 

   

 

ljr
Level 4

An A code is an add back. NY taxes the $10,200 in unemployment. Proseries looks funny and we will probably have to explain it but you see the unemployment on its own line. Then the federal back out on another line and then the NY Decoupling Add back on form IT-558. It is in 3 places on the NYS return.

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PeterK
Level 2

I'm still confused by the worksheet "Ny allocated amount of above" if it should be $0 or $10200

If $0 entry the line 45 income % = 1 If $10200 entry the NY % = 1.4

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Camp1040
Level 8

Update your software, line 19a smart worksheet will adjust for the UI, IT-588 should not require any entry.

If the federal is completed correctly all the adjustments will be automatic, even adjusting for EIC if the client is eligible.

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PeterK
Level 2

Updated software but IT-558 A-011 requires an entry in field “NY state allocated amount of above “ 

Is proper entry $0 or $10200 ? System populates the $10200 but requires the NY allocated amount on the worksheet.
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Camp1040
Level 8

Something is not right, have you allowed the federal program to disallow the UC or have you manually adjusted for UCE?

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Camp1040
Level 8

The instructions state "DON NOT ENTER ANY INFORMATION ON THE IT-558"

Enter all information on the worksheet, once on the worksheet the line A-011 is prepopulated with the amount of UC added to NY taxable income.

No allocated amount ALL UC is taxable to NYS.

Have your tried the instructions?

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PeterK
Level 2

Understood. My question is not with IT-558 BUT WITH THE WORKSHEET for IT-558. Software has automatically populated the WORKSHEET field for the Federal exclusion of 10,200 on A-011 of worksheet but requires an entry for the NY state allocated amount. of A-011 on worksheet which flows to the IT-558. IS  NY ALLOCATED AMOUNT THE $10200 or $0 ??? 

I would think the software would automatically handle this exclusion. 

 

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Camp1040
Level 8

It does not require an entry. Is the field highlighted in pink? Have you run the final review, I have filed 8 returns all correct without entering the amount, check the IT-201 page 1&2 are the taxable amounts correct?

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ljr
Level 4

I don't have any errors and the worksheet is adding back the $10,200 correctly to form it-558. Is your program up to date?

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PeterK
Level 2

Pro series Basic is up to date. My question is the required IT558 worksheet field A-011 NY State allocated amount. Unsure of numeric entry required here. Is it to match the 10200 federal amount program automatically places on worksheet?

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Camp1040
Level 8

blank is the answer. 

There is nothing to allocate to NYS because it is all taxable by default.

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PeterK
Level 2

Yes it is a pink field and review calls it an error requiring an amount.

I am using Pro Series Basic. Several calls to support and no one can answer what "allocated amount" definition is and what it should be. It must be the full 10200 or zero. They force a manual entry and there is no program help available. Most frustrating. Does your worksheet program feed a NY State allocated number to the IT-558 which we do not touch. If it feeds 10200 to that form there is my answer.

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Camp1040
Level 8

I use basic also, IT-558 worksheet produces an error if you try and enter a number into the NY state allocated amount above.

Double check that you did not do a manual adjustment to the federal return. If that does not fix it then delete the state, by unchecking NYS from the choose state tab and then reselect the state to re-populate.

Before all that make sure you update and then repair updates and then reboot your computer.

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Camp1040
Level 8

DID YOU FIX IT?

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PeterK
Level 2

I did everything suggested. when transfer Fed to NYS now it didn't transfer NY unemployment amount.

I went back to Fed and manually entered amount on nonresident allocation sheet. Transfer again to state to find same required entry on IT558 A-011 of NY state allocated amount of 10200 exclusion.

Since this required field feed the IT558 addition field for NY I entered $0 assuming we only want to add the 10200 exclusion to Federal amount and not NY amount.

Again my original question was to add 10200 or 0 to IT558 WORKSHEET A-011 NY State allocation field.

I still would like a logical explanation of how the software works and confirm my $0 entry

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Camp1040
Level 8

So you are filing a IT-203 part year and not a IT-201 resident?

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Camp1040
Level 8

No exclusion for NYS so enter zero, even part year resident all NYS issued unemployment is taxable to NYS.

View solution in original post

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PeterK
Level 2

yes, i'm filing several non resident NY returns

This is probably why pro series forced allocation field for unemployment exclusion. If there is no exclusion at all in NY why have the allocation field at all in worksheet IT558 A-011 ?? Thanks you for your help with this. Appreciate it.

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Camp1040
Level 8

Just in case NYS decided to exclude UC, would be my quess.

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