IL Unemployment Income--follow Fed??

[artp]

Has anyone seen a post on this?

Art

[KenO]

Looks like they just issued guidance yesterday. IL will not tax the untax benefits, and they are looking into adjusting already filed returns :

 

https://www2.illinois.gov/rev/Pages/American-Rescue-Plan-Act-of-2021---Nontaxable-Unemployment-Benefits.aspx

[artp]

Thanks..that is good news

[Possi]

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. 

[Randall]

I'm still waiting on Ky and Oh.

 

[gfizer]

1 hour ago, Randall said:

I'm still waiting on Ky and Oh.

 

Ditto.  I can't believe KY will exempt it.  Just patiently (NOT!) waiting to see what happens here.

[TAXMAN]

1 hour ago, Possi said:

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. 

I just checked one of my VA returns. After taking full exclusion on Fed VA (atx) took it out again. On one of my returns where a partial stays taxable VA is taking whole thing out again. I do not think VA person who answered question understood. I just need to know how to fix it with either a plus adjustment or a neg adjustment.

[Randall]

2 hours ago, gfizer said:

Ditto.  I can't believe KY will exempt it.  Just patiently (NOT!) waiting to see what happens here.

Word from the Ky Society of CPAs is the legal beagles are checking to see if the Revenue Cabinet has the authority to say yay or nay.  If not, it will take legislation and that is not likely given their time left in session.

[gfizer]

14 hours ago, Randall said:

Word from the Ky Society of CPAs is the legal beagles are checking to see if the Revenue Cabinet has the authority to say yay or nay.  If not, it will take legislation and that is not likely given their time left in session.

Just received this response to an email I sent to KY DOR yesterday.  I think I will go ahead and make the adjustment as an addition back to AGI on Schedule M and turn loose of the ones I've been holding on to.  The natives are getting restless.

"RE: Income Taxes

Inbox

DOR WEB Response Individual Income Tax <[email protected]>

9:40 AM (8 minutes ago)

to me

Kentucky has not adopted legislation at this time for the $10,200 of unemployment not being taxed. If that legislation is passed, it will be posted on our website. As of now the income will need to be added to your Kentucky return as taxable on the SCH M. Thank you.

XXXXXXXXX XXXXX,  Section Supervisor

Department of Revenue, Office of Income Taxation

[Possi]

17 hours ago, TAXMAN said:

I just checked one of my VA returns. After taking full exclusion on Fed VA (atx) took it out again. On one of my returns where a partial stays taxable VA is taking whole thing out again. I do not think VA person who answered question understood. I just need to know how to fix it with either a plus adjustment or a neg adjustment.

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. 

[Randall]

1 hour ago, gfizer said:

Just received this response to an email I sent to KY DOR yesterday.  I think I will go ahead and make the adjustment as an addition back to AGI on Schedule M and turn loose of the ones I've been holding on to.  The natives are getting restless.

 

I'll wait a little while longer.  I've been adding it back for now as my preliminary.  Still waiting on Ohio.  Had one who was over 150 AGI so it didn't matter.  Another Oh I added back, didn't increase income to cause tax so it didn't matter either.