KATHERINE Posted March 31, 2021 Report Share Posted March 31, 2021 Hi team! Good morning. I was a little confused on NY Unemployment benefit. From sources online, NY is not excluding the first $10,200 unemployment benefit from taxable income. But when I use ATX to prepare NY tax return, I saw the recomputed the fed AGI is the same as Fed AGI (NY IT 201 box 19 &19a), and the state adjustment start from there. To me, it seems like the return took the $10,200 exclusion as the Fed. Is my software or I should do some other manual work to fix it? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 31, 2021 Report Share Posted March 31, 2021 Add back on Form IT-558 using code A-011. NY has been too busy legalizing marijuana to vote on any tax de-decoupling. 2 Quote Link to comment Share on other sites More sharing options...
KATHERINE Posted March 31, 2021 Author Report Share Posted March 31, 2021 Thank you! :). I checked the most recent 558 instruction, and it was not updated for the new code yet. Thank you for your suggestion, I think I will hold the returns till the software updated. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 31, 2021 Report Share Posted March 31, 2021 I haven't heard of NY approving any software yet for this issue. (Too busy sampling re their new law?!) 1 Quote Link to comment Share on other sites More sharing options...
KATHERINE Posted March 31, 2021 Author Report Share Posted March 31, 2021 But ATX allow to efile without adding it back now, that made me confused. IRS will adjust by themselves for early filed returns which had reported as income, NYS may do the same. For whom doesn't want to wait, is it practical that I may file it as it and let the state decide how much refund to give? Thank you Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 31, 2021 Report Share Posted March 31, 2021 Two bills in committee: https://www.nysenate.gov/legislation/bills/2021/a6584 https://www.nysenate.gov/legislation/bills/2021/s4819 Explain the options to your clients, and let them decide. 1 Quote Link to comment Share on other sites More sharing options...
Carolbeck Posted March 31, 2021 Report Share Posted March 31, 2021 Just a Heads up if you are using ATX and open a early return already filed without the Unemployment Exclusion to see if corrected. The Federal is fine, but the NYS is not. When you include the IT-558 for the code A-011, the IT-201 is doubling adding back the excluded UCE. The only way to correct is to delete all the NYS forms but not the e-file form for NYS, (IT-201, IT-196, and the IT-558) and add the forms back in. This is just for the early ones that will have already filed before the American Rescue Plan became law. This is not an issue if you have not filed yet, but double check Lines 18 and 19. Also, NYS really has not made a definative decision yet. What a fun tax season! 1 Quote Link to comment Share on other sites More sharing options...
B. Jani Posted March 31, 2021 Report Share Posted March 31, 2021 ATX already fixed NY 558 worksheet with code 011 to add back Unemployment and flows to 201 to modified AGI. You can file until NY make any decision. Quote Link to comment Share on other sites More sharing options...
FDNY Posted April 2, 2021 Report Share Posted April 2, 2021 On 3/31/2021 at 5:33 PM, Carolbeck said: The Federal is fine, but the NYS is not. When you include the IT-558 for the code A-011, the IT-201 is doubling adding back the excluded UCE. This only happens if on an earlier return, before being automatic, you manually subtracted the UCE on Sch 1 L 8, so it's there twice. It will double the amount on NY. What a crazy year, one for the books. 1 Quote Link to comment Share on other sites More sharing options...
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