| AK |
|
N/A |
|
| AL |
N/A |
No |
|
| AR |
N/A |
No |
ARSB236 signed into law 03/02 states that Unemployment is not taxable |
| AZ |
Conforming |
Yes |
The AZ Senate Bill 1752 was passed on April 14, 2021.
Taxpayers who included all of their Unemployment benefits in their Arizona starting point will have the option of amending their Arizona return. The AZ DOR is recommending that taxpayers not amend their Arizona return until the Federal return has been amended or adjusted by the IRS. Additional information is forthcoming. |
| CA |
Decoupling
|
No |
Generally conforms with the IRS. This is listed as decoupling because they do not ever tax UE. |
| CO |
Decoupling
|
Yes |
https://tax.colorado.gov/press-release/colorado-provides-guidance-on-american-rescue-plan-related-to-taxable-ui-benefits |
| CT |
Conforming |
Yes |
|
| DC |
Conforming |
Yes |
|
| DE |
Conforming
|
No |
|
| GA |
Decoupling |
Yes |
|
| HI |
Decoupling |
Yes |
|
| IA |
Conforming |
Yes |
|
| ID |
Decoupling
|
Yes |
Message page until update is implemented.
Idaho unemployment insurance benefits are taxable by Idaho and should be included in Idaho income when filing 2020 Idaho income tax returns. Any unemployment benefits deducted on federal Form 1040, Schedule 1, line 8, should be added back to the Idaho return as follows:
If filing Form 40, report the income on Form 39R, Part A, line 6, “Other Additions.”
If filing Form 43, don’t include the federal unemployment insurance exclusion on line 19, “Other Income.” Report the exclusion amount on Form 39NR, Part A, line 4, Column A, “Other Additions.” |
| IL |
Conforming
|
Yes |
IL.gov |
| IN |
Decoupling |
Yes |
|
| KS |
Conforming
|
Yes |
|
| KY |
Decoupling |
Yes |
Kentucky adopts the IRC in effect on 12/31/2018. UCE will be added back on KY Schedule M, Line 5, for resident filers and will be not be included on form 740NP, page 4, Col B, Line 16 for non-resident and part-year resident filers.
|
| LA |
Conforming
|
Yes |
|
| MA |
See notes
|
Yes |
MAWK_UEC calculates the allowable MA deduction. Mass.gov |
| MD |
Conforming
|
Yes |
MD502LU calculates the subtraction for eligible taxpayers. See Related Links below for details. |
| ME |
Conforming
|
Yes |
Message page all unemployment returns until law is passed. |
| MI |
Conforming
|
Yes |
|
| MI City |
Conforming
|
No |
Adjust exclusion for federal UCE |
| MI DT |
Conforming
|
No |
Adjust exclusion for federal UCE |
| MN |
Decoupling
|
Yes |
Addback on form (waiting on changes) |
| MO |
Conforming
|
Yes |
|
| KCMO |
Conforming
|
Yes |
|
| MS |
Decoupling
|
Yes |
|
| MT |
Conforming
|
No |
|
| NC |
Decoupling |
Yes |
Update (3/27/21) adds the federal UCE back to line 7 of NC D-400. |
| ND |
Conforming
|
|
|
| NE |
Conforming |
Yes |
|
| NH |
N/A |
No |
|
| NJ |
Decoupling
|
No |
|
| NM |
Conforming |
Yes |
Traditionally conforming, but no guidance has been given yet |
| NY |
Decoupling |
Yes |
The Unemployment Compensation Exclusion Addback (UCE Addback) will be included on line 1 of Form IT-558, New York State Adjustments due to Decoupling from the IRC, using code A-011. Form IT-558 is named NY558 in our software. The software will automatically compute the UCE Addback and report it using code A-011 on line 1 of the NY558.
EF Message 0721 will no longer be generated when unemployment has been excluded from federal AGI. |
| NYC |
N/A |
|
|
| OH |
Conforming
|
Yes |
See the OH 1040 Instructions, page 6 in the section: What is Modified Adjusted Gross Income? |
| OH CITY |
N/A |
No |
|
| OH RITA |
N/A |
No |
|
| OK |
Conforming
|
Yes |
|
| OR |
Conforming |
Yes (No if work was performed on Indian reservation) |
|
| PA |
N/A |
No |
|
| PH |
N/A |
No |
|
| RI |
Decoupling |
Yes |
UCE should be added back on RI Schedule M, Lines 2g (new line). |
| SC |
Conforming |
Yes |
SC Update 12, released on 5/25/21, prevents the add back of UCE to SC income on line 1e, "Other additions to income." SC Returns filed prior to 5/25 may need to be amended. |
| TN |
N/A |
N/A |
|
| TX |
N/A |
N/A |
|
| UT |
Conforming
|
Yes |
|
| VA |
Decoupling |
No |
|
| VT |
Conforming
|
Yes |
|
| WI |
Decoupling
|
Yes |
Line 22, "Other adjustments," of Schedule M, Additions to and Subtractions from income, will now disregard any unemployment compensation exclusion amount on line 8, "Other income," of federal Schedule 1, Additional Income and Adjustments to income. |
| WV |
Conforming |
Yes |
Drake20 Update expected 4/15/21-- With the passage of SB 693, WV has conformed with the exclusion of the first $10,200 of unemployment compensation. New original returns will be permitted to exclude up to $10,200 of unemployment compensation from the federal adjusted gross income to match the FAGI on the federal return. The 1099-G should be submitted (MeF) or attached (if paper filed) to support the claim.
WV returns that were filed prior to the passage of SB 693 should have included the UC on Schedule M line 53 as an increasing modification. Amended returns being filed to exclude the unemployment compensation will need to supply the corresponding 1099-G reflecting the amount of exclusion. Amended returns may be filed electronically or by paper. |