[SES1066]

A near total mis-mash of the facts. States have nothing to do with the Federal Tax except as using IRS rules as guideline(s) (SAF = Same as Federal). The IRS is reworking the FEDERAL returns that have the Unemployment Income (UI) as taxable and is lowering the AGI (Adjusted Gross Income) by a maximum of $10,200 per person (if MFJ AND UI > $10,200). They, the IRS, are also trying to adjust the phase-in/phase-out credits as well. A VERY BIG JOB!

What is at question is how the individual states handle their 'SaLT' (State and Local Taxes) returns for this UI payment. They CANNOT disallow this Federal Tax reduction BUT they CAN refuse to follow suit in making the same concession for their returns. There is nothing requiring them to follow this US Congress mandate, this is Federalism at work!

Bona Fides: Enrolled Agent doing taxes 18+ years.

[SES1066]

The break applies to this tax-filing season, which began Feb. 12 and ends May 17.

Another error as this 'fix' is not limited to this 'filing season' but to tax returns reporting UI (Unemployment Income) received in Calendar Year 2020 and AGI less than the cut-off limits. Thus a tax return filed with an extension on October 10th of 2021, for tax year 2020, will get the same treatment as one filed on or before 17 May 2021!

[gcparent]

Ok so why hasn’t big mouth Schumer done this for NY.