BulldogTom Posted March 26, 2021 Report Share Posted March 26, 2021 This just came in from Spidell. CA (and other states that treat UI as community property) give an advantage to taxpayers. Here is the quote from the article: "If a married couple’s combined AGI (calculated without any UI compensation) is below $150,000, then MFJ taxpayers may exclude up to $20,400 of unemployment income even if one of the spouses had less than $10,200 in UI and the other spouse had more than $10,200. That is because California is a community property state and the Tax Court has recognized that UI is treated as community property. (Calhoun v. Commissioner (1992) 64 TC 222) However, your tax software may not properly split this income, and could improperly limit the exclusion if one spouse received less than $10,200. Tax professionals need to watch out for this and apply a manual override in this situation." Tom Modesto, CA Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted May 27, 2021 Author Report Share Posted May 27, 2021 IRS yesterday confirms that MFJ taxpayers in Community Property States are to split the UI equally between them and then apply the exclusion to each spouse, even if only one had UI. Big break for taxpayers in Community Property States. Tom Modesto, CA 2 Quote Link to comment Share on other sites More sharing options...
Lee B Posted May 27, 2021 Report Share Posted May 27, 2021 One more time, I am sooo glad I am not in a community property state 4 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.