# Anyone have an idea how not paying taxes on $10200 of unemployment will work?



## JeanOcelot0 (Dec 30, 2020)

Evidently, this is in the CHEESE bill, but I am wondering if it will be pre-AGI or as like the Schedule C worksheet.


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## wallae (Jun 11, 2018)

Move to a country with no extradition


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## Guido-TheKillerPimp (Jan 4, 2021)

wallae said:


> Move to a country with no extradition


Such as North Korea?


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## Uber's Guber (Oct 22, 2017)

JeanOcelot0 said:


> [HEADING=2]Anyone have an idea how not paying taxes on $10200 of unemployment will work?[/HEADING]


You actually used the two words "_unemployment_" and "_work_" in the same sentence. Probably scared the shit out of yourself when you saw what you did!


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## Amsoil Uber Connect (Jan 14, 2015)

Grand Caymen, that way you can set up your Off-Shore account like the Hollywood Elite.


Guido-TheKillerPimp said:


> Such as North Korea?


.
.

Update to Schedule 1 Line 8.
The question becomes, When will updated form become available ?


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## Stevie The magic Unicorn (Apr 3, 2018)

Did you have any other income aside from the 10,200 in UI for the year?

If not isn't the first 12K fall under the standard deduction?


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## tohunt4me (Nov 23, 2015)

Guido-TheKillerPimp said:


> Such as North Korea?


Good cabbage !


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## Calirolla (Aug 13, 2018)

Don't know if it's fraudulent way of doing it but making my payout 'Unemployment Compensation" $10,200 less makes my owed amount drop from $538 to $160 (also had some working income that wasn't taxed) according to TaxSlayer.
When I do a $1,020 tax paid add on to 1099G it shows a refund of $482 instead of owed money going off info finds below. This scenario might be considered fraud since I didn't pay that much..only marked the box once in a while paying a little $165.
Think the taking it out of the income total might be the right way, but don't know for sure.

From a CNBC story "A new provision introduced by the Senate last week and approved by the House will waive taxes on the first $10,200 of unemployment benefits for individuals who made less than $150,000 in adjusted gross income in 2020."
Some Illinois Senator Durbin site says assuming 10% tax as much as $1,020 in tax forgiveness for unemployment claimants, assuming a 10 percent tax rate.
Then a Cleveland site mentions Households with income of less than $150,000 will be able to "deduct up to $10,200 unemployment benefits from their 2020 income" in filing their taxes this winter or spring. 
All search results for how to mark $10,200 tax cut on unemployment


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## ANThonyBoreDaneCook (Oct 7, 2019)

JeanOcelot0 said:


> Evidently, this is in the CHEESE bill, but I am wondering if it will be pre-AGI or as like the Schedule C worksheet.


You wait. The irs will make an adjustment. 
If you've already filed you will have to amend your 2020 return.

This is why I didn't file early or opt to have taxes withheld


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## JeanOcelot0 (Dec 30, 2020)

Uber's Guber said:


> You actually used the two words "_unemployment_" and "_work_" in the same sentence. Probably scared the shit out of yourself when you saw what you did!


Uh, it's not the individual to whom the verb _work_ applies, but rather to the tax code. Were you ever forced to go to summer school because you had failed English?



Stevie The magic Unicorn said:


> Did you have any other income aside from the 10,200 in UI for the year?
> 
> If not isn't the first 12K fall under the standard deduction?


Actually, I took advantage of a tax credit to pile the CHEESE into a Roth IRA (it only costs 6% of the excess contribution amount no distributed or relieved by earned-income contributability per year in excise tax, so I don't have any federal income tax liability); however, I have about a net 3% state income tax liability if the income is not knocked down pre-AGI. I also have some capital gains for the day trading outside of my IRA.

@@@@@@@@

OK, this text of the bill seems to say that it is to be excluded from gross income!

https://fm.cnbc.com/applications/cnbc.com/resources/editorialfiles/2021/03/05/Amendment_UI.pdf


> PART IV-OTHER PROVISIONS





> "(c) SPECIAL RULE FOR 2020.-In the case of any taxable year beginning in 2020, gross income shall not include so much of the unemployment compensation received by an individual as does not exceed $10,200.''


So, this seems to indicate that not only is it not included in AGI, but also that it is only *beginning* in 2020, and thus it should apply to 2021 as well. :biggrin: :biggrin:

It's like FAT-FREE CHEESE! :roflmao::roflmao:


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## Amsoil Uber Connect (Jan 14, 2015)

Stevie The magic Unicorn said:


> Did you have any other income aside from the 10,200 in UI for the year?


Total UI almost 20K + Pension. 10,200 is a deduction being given.



JeanOcelot0 said:


> and thus it should apply to 2021 as well. :biggrin:


Awesome, Thanks. Cause as of now my estimate UI for 2021 is just over 16K.


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## Who is John Galt? (Sep 28, 2016)

JeanOcelot0 said:


> Anyone have an idea how not paying taxes on $10200 of unemployment will work?


Ask your warder.
.


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## wallae (Jun 11, 2018)

Guido-TheKillerPimp said:


> Such as North Korea?


I would probably use California


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## islanddriver (Apr 6, 2018)

ANThonyBoreDaneCook said:


> You wait. The irs will make an adjustment.
> If you've already filed you will have to amend your 2020 return.
> 
> This is why I didn't file early or opt to have taxes withheld


more info here. I'm just going to wait to file. till they tell us how to deduct the $10200 Unemployment. 
https://www.hrblock.com/tax-center/coronavirus-tax-impact/#jump-to-second-bill-information


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## SOLA-RAH (Dec 31, 2014)

JeanOcelot0 said:


> Evidently, this is in the CHEESE bill, but I am wondering if it will be pre-AGI or as like the Schedule C worksheet.





ANThonyBoreDaneCook said:


> You wait. The irs will make an adjustment.
> If you've already filed you will have to amend your 2020 return.
> 
> This is why I didn't file early or opt to have taxes withheld


THIS. You just simply wait for TurboTax or H&R Block to get caught up and update their software. Still plenty of time before April 15th.


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