10,200 unemployment exemption illinois
10,200 unemployment exemption:
Thank you for publishing the information on the IRS worksheet regarding the exemption.
I notice he touched upon the issue regarding the state of Illinois. It’s interesting to note, if you plug the information into line 7 in line 8 (entering “minus$10,200) as instructed to do so by the IRS, Illinois state tax calculation will reduce itself by approximately $500 (4.95% of $10,200).
If you file the IRS instructions exactly, using TurboTax, you have to do a “override“ On schedule one. Whether this is valid or not for illinois state taxes, I guess will have to be determined.
However, the way Illinois state forms are set up now, taxpayers would see a reduction.
But those who follow the irs instructions exactly, will note a reduction of $500 in Illinois state taxes.
I still plan on waiting for further guidance, or the likelihood that the state of Illinois will come up with a workaround so that they can capture (ignore, if you will) the $10,200 exemption.
I’m very much aware this is a “deep in the weeds“ discussion that might be difficult for most of your readers or listeners to understand, but, if you hear anything else about this issue, if you be so kind as to let everybody know I would appreciate it.
Terry Says
That is SO interesting! Of course, that’s for paper returns, as noted in my column on Stimulus #3. Right now, the tax prep service are adapting it for their programs. I wonder if they are waiting to see whether states go along with this $10,200 deduction and make it automatically appear on state tax returns! So far, I have not seen anything from Illinois about that. But it would be interesting if they had to try and get the money from taxpayers after returns are filed using this procedure!
I’m so glad I have smart readers! thank you for sharing!
