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 ?
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?