How do I input unemployment compensation as the first $10,200 being exempt in my 1040 return using CCH® ProSystem fx® Tax and CCH Axcess™ Tax?

  • Article Type:
  • How To
  • Last Modified:
  • 03/31/2021

Objectives

Based on the American Rescue Plan Act, if the adjusted gross income of the taxpayer for 2020 is less than $150,000, then they may exclude up to $10,200 of unemployment compensation.
 

Environment

CCH® ProSystem fx® Tax
CCH Axcess™ Tax    
1040
Individual

 

Procedure

To enter Unemployment Compensation
  1. Go to Income > Other Income (1099-G, 1099-K, 1099-MISC, 1099-NEC, W-2G) worksheet.  (Interview:  IRS - 1099G)
  2. Expand Section 3 - Certain Government Payments (IRS 1099-G).   (Interview:  IRS - 1099G)
  3. Input the appropriate information as it appears on the IRS 1099-G the taxpayer received.
The program has been updated on release 2020.03020/2020-3.2 to reflect the unemployment exclusion automatically.  If you are on that release, the steps below are not necessary.  If you are on a release prior to this, please continue on to the following steps.

To enter the corresponding subtraction
  1. Go to Income > Other Income (1099-G, 1099-K, 1099-MISC, 1099-NEC, W-2G) worksheet.
  2. Expand Section 1 -IRS 1099-MISC (Other Income).   (Interview IRS - 1099MISC)
  3. Select Detail.
  4. In Line 5 - No 1099-MISC received select the checkbox.   (Interview Box 37)
  5. In Box 3 - Other Income, input the result from the worksheet on the IRS website as a negative entry.    (Interview Box 67)
  6. Expand Section 2 - Other.
  7. In Line 15 - Payer name description - override enter "UCE"     (Interview "Additional Information, Box 115)
  8. In Line 16 - Income type select Non SE income.   (Interview Box 116 = 2)
  9. Calculate the return.
  Solution Tools
  Attachments
 Solution Id 000123685/000123685
 Direct Link
To provide feedback on this solution, please login.

Your feedback about this article will help us make it better. Thank you!