Tax pros, enter here
Senior Member
Joined: Apr 2006
Posts: 4,301
Likes: 0
From: Indianapolis
Thread Starter
BAZINGA!
Joined: Aug 2004
Posts: 21,613
Likes: 0
From: San Diego, CA
It reduces it from your AGI...NOT your wages, so in effect it doesn't see that money period for taxes. Go ahead and do a calfile. You will see unemployment benefits under income reductions/deductions.
It is a reduction of your AGI to an amount that CA taxes, and since it doesn't tax it it doesn't count towards your AGI
I filled out the sheets on calfile to their directions and was even on the phone with the franchise tax board and they assured me I was inputting it correctly.
Bassically on page 1 you put in your AGI
Page two you put in reductions and additions (unemployment and 1099-r's count as reductions)
It is a reduction of your AGI to an amount that CA taxes, and since it doesn't tax it it doesn't count towards your AGI
I filled out the sheets on calfile to their directions and was even on the phone with the franchise tax board and they assured me I was inputting it correctly.
Bassically on page 1 you put in your AGI
Page two you put in reductions and additions (unemployment and 1099-r's count as reductions)
Joined: Oct 2000
Posts: 44,908
Likes: 0
From: Location Location
I guess I've done my taxes wrong 2 times in the past 20 years. or you're doing it wrong this time. I'll let someone who is a CPA chime in.
__________________
'00 Dakar Bus CRS Edition
LCD Squad #0001
'00 Dakar Bus CRS Edition
LCD Squad #0001
Originally Posted by WiLL
...I really wanna get out and shoot people.
Joined: Jun 2001
Posts: 58,579
Likes: 0
From: Lll
I think thats where the miscommunication was.
If you made $10k in wages and $5k in unemployment compensation, youre saying that your AGI is $15k. Federal will tax you on 15k. CA will take your $15k agi and as a deduction take out the $5k and tax you on the $10k.
I think most here thought you thought the $5k is reduced from your original $10k.
If you made $10k in wages and $5k in unemployment compensation, youre saying that your AGI is $15k. Federal will tax you on 15k. CA will take your $15k agi and as a deduction take out the $5k and tax you on the $10k.
I think most here thought you thought the $5k is reduced from your original $10k.
__________________
.
.
Joined: Jun 2001
Posts: 58,579
Likes: 0
From: Lll
Thread Starter
BAZINGA!
Joined: Aug 2004
Posts: 21,613
Likes: 0
From: San Diego, CA
I think thats where the miscommunication was.
If you made $10k in wages and $5k in unemployment compensation, youre saying that your AGI is $15k. Federal will tax you on 15k. CA will take your $15k agi and as a deduction take out the $5k and tax you on the $10k.
I think most here thought you thought the $5k is reduced from your original $10k.
If you made $10k in wages and $5k in unemployment compensation, youre saying that your AGI is $15k. Federal will tax you on 15k. CA will take your $15k agi and as a deduction take out the $5k and tax you on the $10k.
I think most here thought you thought the $5k is reduced from your original $10k.
Example
AGI = 90k
CA Adjustments (UI benefits, pensions, rollover, etc.) = $25k
CA Adjusted AGI = 65k
CA Standard Deduction = 7200
Taxable income = 57800
The lady said that it is all factored into your AGI already from my 1040.
Last edited by Draconius; Mar 31, 2010 at 10:43 AM.
.
Joined: Mar 2002
Posts: 10,995
Likes: 0
Unemployment benefits: Unemployment benefits are taxable on your federal return except for the first $2,400 in benefits, which are tax-free for 2009. Unemployment benefits are not subject to Social Security or Medicare tax. Nor are they taxable on your California income tax return, although some other states tax them.
If you did not choose to have 10 percent of your unemployment check withheld for federal taxes and did not make estimated tax payments, you could owe more than you were expecting.
If you did not choose to have 10 percent of your unemployment check withheld for federal taxes and did not make estimated tax payments, you could owe more than you were expecting.
