Max W Posted March 15, 2021 Report Share Posted March 15, 2021 Drake announced that its software for the UI exemption will be ready tomorrow morning. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 15, 2021 Report Share Posted March 15, 2021 Yep, announcement came in an email. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 16, 2021 Report Share Posted March 16, 2021 I got the Drake update and checked on one return. All I'll say is BE CAREFUL WITH THE STATES. DE already decided to make the UI N/T, and DE generally piggybacks the Fed laws and starts with Fed AGI and makes just a few modifications. That would be fine if DE didn't make a special modification in Feb already to exclude all of the UI from state tax for 2020, but now that some or all is excluded from the Fed, Drake is still subtracting the entire amount again because they fixed the Fed but not so that the state calculates correctly. 1 Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted March 16, 2021 Report Share Posted March 16, 2021 Thanks for the headsup. California doesn't tax any unemployment but I will double check to make sure it doesn't adjust it out again. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted March 17, 2021 Report Share Posted March 17, 2021 California seems corrected as of this afternoon. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 17, 2021 Report Share Posted March 17, 2021 Delaware's calculation has also been corrected as of last night. 1 Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted March 18, 2021 Report Share Posted March 18, 2021 But the modified AGI for ACA reconciliation is causing a reject as of last night. Hopefully this gets corrected soon! Quote Link to comment Share on other sites More sharing options...
Chuck A Posted March 19, 2021 Report Share Posted March 19, 2021 And here in New York we are waiting (as usual) for the government to make a decision on taxing unemployment. NY usually piggy backs the Feds but I noticed that they are not with the contribution deduction allowed for non-itemizers on their federal returns this year ($300 max). Which leaves me wondering will they tax unemployment as usual or go along with the feds. Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 20, 2021 Report Share Posted March 20, 2021 MA taxes unemployment, so as long as they don't deduct it from the state we should be good. But I'll definitely check - thanks! Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 21, 2021 Report Share Posted March 21, 2021 NC has not announced any changes yet and quite honestly, I don't expect them to. They always tax unemployment. The Drake update also corrected already filed taxes returns with unemployment compensation. There a fix in the works to correct this and we probably won't know until the IRS releases the guidance on how to amend those returns. Quote Link to comment Share on other sites More sharing options...
Randall Posted March 21, 2021 Report Share Posted March 21, 2021 Still waiting on Ky and Oh. ATX will probably have the updated Fed this week. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 21, 2021 Report Share Posted March 21, 2021 Drake has a very useful knowledgebase article about the current status of the taxation of unemployment benefits in all 50 states. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 26, 2021 Report Share Posted March 26, 2021 I stand corrected on NC. NC always uses the Fed taxable income as a starting point. With that said, the exempt unemployment from Federal is also exempt from NC. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.