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cpacand
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| Posted: 21 Dec 2009 at 01:52 | IP Logged
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Need help for the following question:
This is 2006 AICPA released que .Actually my doubt is that till 2008, unemploment compensation is fully taxable but now in 2009 updates there is $2400 exclusion for unemployment compensation so i just want to know whether i should deduct $2400 from his combined compensation ( 4000+2000)or its only deductible from $4000.
Could somebody please help me
Question: Porter was unemployed for part of the year. Porter received $35,000 of wages, $4,000 from a state
unemployment compensation plan, and $2,000 from his former employer's company-paid supplemental
unemployment benefit plan. What is the amount of Porter's gross income?
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cpa0123
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| Posted: 21 Dec 2009 at 10:10 | IP Logged
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Unemployment benefits paid under the US or State laws qualify for the exclusion. Supplemental benefits received from a Co financed fund is not eligible. So in this case, gross income would be $41,000-$2,400=$38,600. If a joint return is filed, it would be ascertained separately if both spouses receive unemployment compensation.
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ineed75
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| Posted: 22 Dec 2009 at 00:49 | IP Logged
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I am currently using Becker 2009 Edition. It seems like it
does not mention the unemployment compensation deduction at
all in the textbook. Is this deduction a new rule?
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cpa0123
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Yes. Becker & IRS websites have updates available.
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Topic: unemployment compensation Que
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