#What tax form for unemployment software

Taxpayers can then calculate their modified federal AGI and enter it on Line 4 of the amended Form D-40. See IRS New Exclusion of up to $10,200 of Unemployment Compensation. If taxpayers have not received a notice, they may calculate their modified federal AGI by using Schedule 1, Line 7, and the Unemployment Compensation Exclusion Worksheet–Schedule 1, Line 8. District Form D-40 can then be completed using the modified federal AGI.

A notice of adjustment from the IRS should generally be received within thirty days after the correction has been made.

Taxpayers who have received a notice from the IRS that it has adjusted their federal return that modifies their federal AGI, should enter that modified federal AGI on Line 4 of the amended Form D-40.

Taxpayers who are filing an amended return by mail should include a copy of the 1099-GS that reports unemployment compensation.īecause the IRS is automatically adjusting taxpayers’ returns, taxpayers should use the following methods to determine their modified federal AGI.

#What tax form for unemployment software

Taxpayers who filed a return with the aid of tax preparation software should ensure that it is updated to the most recent version prior to filing an amended Form D-40. Taxpayers who filed a return with the aid of a tax preparer should contact their preparer about filing an amended Form D-40. OTR is now advising taxpayers, who filed an original 2020 District tax return without reporting the unemployment exclusion, to file an amended return with OTR. In that notice, OTR stated that because federal adjusted gross income (“federal AGI”) is the starting point for calculating District tax liability, the federal exclusion for unemployment compensation should be reflected on a taxpayer’s District individual tax return (“Form D-40”).įurthermore, OTR advised taxpayers who had filed a District return prior to the enactment of the American Rescue Plan Act to defer filing an amended return at that time until OTR issued additional guidance. On April 15, 2021, the Office of Tax and Revenue (“OTR”) issued Tax Notice 2021-06, which explained the effect on District taxpayers of the unemployment compensation exclusion in the American Rescue Plan Act (P.L.