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The excludable unemployment amount for MFJ in community property states is incorrect with the latest update

munevara
Level 1

I just updated my software and noticed that the calculation for the excluded amount of unemployment income had changed.  Upon looking into it, I noticed that it was because the community property boxes had been automatically checked on the 1099-G worksheet. This caused the unemployment income to be split in half which allowed the full amount to be excluded even though one spouse collected over $10,200.  Unchecking those boxes corrected this problem.  

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Just-Lisa-Now-
Level 15
Level 15

IRS updated the rules.  UI income gets split between both spouses, and each can deduct 10200 in a Community Property State

https://www.irs.gov/forms-pubs/unemployment-exclusion-update-for-married-taxpayers-living-in-a-commu...


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Just-Lisa-Now-
Level 15
Level 15

IRS updated the rules.  UI income gets split between both spouses, and each can deduct 10200 in a Community Property State

https://www.irs.gov/forms-pubs/unemployment-exclusion-update-for-married-taxpayers-living-in-a-commu...


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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munevara
Level 1

Hopefully the IRS will automatically make this adjustment for returns that have already been filed.

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