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Should the $10.2K Unemployment exclusion change the California State income tax results when the state doesn't tax Unemployment?

Level 2

The way ProSeries is solutioning the Unemployment exclusion is by entering a matching negative amount in "Other Income" on Form 1040 Sched 1. On the California state CA form the appropriate amount is listed in column "B" subtracting the unemployment income. However, also listed in column "A" on the CA form is the matching negative entry under "Other Income" reducing the California taxable income even further (with no column "B" adjustment entry).

Is anyone else seeing this? Am I correct? Is this an error? Should I manually correct the state return eliminating the negative "Other Income" entry ?


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3 Replies 3
Level 15
Level 15

You have to add back the federal UI exclusion on the CA return so its not deducted twice for CA.

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Level 2

Thank you Lisa...That's what I'm planning to do.... I just want to know If ProSeries is going to address it in the application so that we don't end up over adjusting.

Level 1

UC is subtracted  ($10,200) in Schedule CA from total Income, however the exclusion is addition in the Schedule CA on Line 8f, (see stmt) .See my example:

  Schedule CA                                                                  Federal Amts     Subtractions      Additions                                                                               

Example:  Line 7.  Unemployment Compensation           19,228                19,228

                 Line 8   Other Income                                    -10,200 

                 Line 8f                                                                                                                 10,200

Unemployment Compensation is not taxable in the State of California?


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