![]() ![]() You should exclude up to $10,200 on your tax return if your modified AGI is less than $150,000. ![]() Because you live in a community property state, if you file a Married Filing Separately return, you report half of your unemployment compensation and half of your spouse's unemployment compensation on your tax return and your spouse reports the other half of your unemployment compensation and half of his or her unemployment compensation on his or her tax return. Am I eligible for the exclusion? (updated July 7, 2021)Ī4. I'm married and live in a community property state. You can't exclude any of your spouse's unemployment compensation that's not reported on your tax return, even if you claim your spouse as a dependent. If you're married, your spouse generally reports their unemployment compensation on their Form 1040-NR and excludes up to $10,200 of unemployment compensation paid to your spouse on that return if their modified AGI is less than $150,000. You should exclude up to $10,200 of your unemployment compensation in 2020 if your modified AGI is less than $150,000. Am I eligible for the exclusion? (added April 29, 2021)Ī3. Yes. Q3. I'm a non-resident alien who files Form 1040-NR. Their modified AGI must be less than $150,000 regardless of their filing status. Individuals with a valid ITIN are eligible for the exclusion, the same as those with a valid SSN. Q2. If I have an IRS Individual Taxpayer Identification Number (ITIN) instead of a Social Security number (SSN), am I eligible for the exclusion? (added April 29, 2021)Ī2: Yes. Your modified AGI is $145,000 for the purpose of determining if your modified AGI is less than $150,000 to qualify for this exclusion.įor further assistance in calculating your modified AGI, use the Unemployment Compensation Exclusion Worksheet in the Instructions for Schedule 1 in the 2020 Form 10-SR instructions. The amount on Schedule 1, Line 7, is $25,000. This applies to all filing statuses.Įxample: You are single and your AGI amount on Line 11 of your Form 1040 is $170,000. ![]() ![]() If your modified AGI is $150,000 or more, you can't exclude any unemployment compensation from your income. You're eligible to exclude only up to $10,200 of the unemployment compensation you received in 2020. If you file Form 1040-NR or file Form 1040 or 1040-SR separately from your spouse, you generally don't report your spouse's unemployment compensation on your tax return. If you and your spouse file a joint return and your joint modified AGI is less than $150,000, you should exclude up to $10,200 of your unemployment compensation and up to $10,200 of your spouse's unemployment compensation. If you're married, the exclusion can apply to you and a separate exclusion can apply to your spouse. Unemployment compensation amounts over $10,200 are still taxable. This means up to $10,200 of unemployment compensation is not taxable on your 2020 tax return. If you're eligible, you should exclude up to $10,200 of your unemployment compensation from income on your 2020 Form 1040, 1040-SR, or 1040-NR. To determine if you're under the $150,000 threshold and qualify for the exclusion, subtract all of the unemployment compensation reported on Schedule 1, Line 7, from the amount of your AGI reported on Line 11 of Form 1040, 1040-SR, or 1040-NR. This threshold stays the same for all filing statuses, regardless of whether you're married and file a joint tax return (it doesn't double to $300,000). The modified AGI for purposes of qualifying for this exclusion is your adjusted gross income for 2020 minus the total unemployment compensation you received. You're eligible to exclude the unemployment compensation if it was received in 2020 and your modified adjusted gross income (AGI) is less than $150,000. Q1. Am I eligible to exclude my unemployment compensation? (added April 29, 2021)Ī1. It depends. These updated FAQs were released to the public in Fact Sheet 2022-39 PDF, December 2, 2022. ![]()
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