Possi

I just called Richmond for this: Go to VA form 760 line 2 (Additions from ADJ Line 3) Use Line 2B of the VA ADJ to report the amount of unemployment that will be added back to the VA AGI. There will NOT be a "code" in the box, but that's ok, they will know what it is. This is to clarify the way of implementing this last tax bulletin: 3/25/21 - Virginia does not yet conform to the American Rescue Plan Act because our date of conformity is December 31, 2020. For Virginia tax returns, tax preparation software should utilize the Virginia Fixed Date Conformity (FDC) addition for the amount of unemployment excluded for federal purposes and then allow taxpayers to claim the Virginia subtraction (Code 37) for the full amount of unemployment that is excluded for federal purposes (which would be equal to or greater than the amount excluded for federal purposes, depending on the amount of unemployment received by the individual).

I have already done a ton of these, and not the way they advised! Instead of using fixed date of conformity, I have adjusted the VA tax returns to add back the federal reduction in MAGI. I'll call Richmond today and see if they will all be adjusted. Because I have time. not

As of Friday, VA has extended the deadline to match IRS, May 17th.

In all my life I have never had a client actually go online and pay the tax liability before they have signed/picked up so that I can actually FILE the tax return. The receipt he sent me says "Reason; Proposed Tax assessment" with 1040 and 2020 tax year. It's all good, but do I actually report the payment on the tax return when I submit it? I don't think I am supposed to do that, because I think I need to SHOW the tax assessment in order for this to wash out properly.

I'm getting rejects for EFT payments (set up for client in the tax return) dated in May. The software updated the new due date, but apparently the IRS has not gotten the memo. I'm shocked. Also can't efile if I zero out the PTC payback. shocked.

I don't mind paying my broker. Of course, he's not churning... LOL He's just making me money.

I have never had a problem. Wash, dirty, clean, no questions. The wash amount is on the Sch D and the detail is on the attachment.

I scan the details and attach it to the Sch D where I have summarized the statements. I have done that for years with no problem. Mine are easily attached in TWise.

No, no warnings at all. I had to know ahead of time, and I had to figure out the adjustment.

Yes, so it will come off their income.

VA will pull from the 1099G, so you do need to make an adjustment to the VA return.

I found this site and it's updating as the states decide: https://support.taxslayerpro.com/hc/en-us/articles/1500004451042-State-Conformity-to-the-2020-Federal-Unemployment-Compensation-Exclusion

I'm going to pull the trigger on this one. I don't believe there are any ripple effects to this. Any update might have a wksht, but I can easily go back to 2 returns and adjust if I need to do that. It won't change the bottom line.

Yes, I can create the efile. I only have 2, but want them both outta here.

Before I go rogue and not wait for the software, is there any reason I should NOT override the Excess advance payment premium tax credit repayment to ZERO?

I just threw up in my mouth a little bit.

A call to GA left us none the better. They tax unemployment, and as of today they are non-conforming. The topic is now in legislature. If we have a GA preparer here, would you please post and tag me? This client owes, and if I don't hear differently, I will push this through next week with full payment. I'll have to add back the unemployment to the GA return. Thanks!

That's what I was talking about, double dipping. You have to put the Federal UCE back into the VA return. I use TW and detail the adjustment on the original like where it is taken out.

It would be tolerable if I didn't do such volume.

Have you already filed all of these returns? If so, I'm anxious to see what happens. No idea. Certainly nobody considered the ripple effect of this circus. More certainly nobody considered US.

I called the state of VA and was told that VA will stick with whatever the Federal AGI is. Honestly though, I don't think she was considering all that entails. I won't be surprised if they change their minds.

TW projected the update on the 27th. They are both CCH products, so I expect ATX to be earlier, too.

Welcome!

Regarding VA; VA does not tax Unemployment. It is adjusted automatically (in the software) to come off the VA taxable income. The software does not recognize the adjustment OFF the federal, so there is a double dip happening because VA starts with the federal AGI. The portion that the new wksht is taking off the federal must be added back to the state in this case, or else it is coming off the federal and off the state, again.

TW update this morning included the unemployment update. States still need updating, but I think we can just work around the states so we don't have to wait. Due date was updated. 8962 Repayment of APT has not been updated yet. This will unlock about 50 returns for me, so I'm happy about that. I'm also happy about wine. Cheers.