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September 9, 2021
Question

Unemployment

  • September 9, 2021
  • 2 replies
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I live in MA. In 2020 I was $40 over the max to receive the 10,200 exemption for unemployment .  I’m still unemployed and now owe taxes. Is there a way around this

    2 replies

    September 9, 2021

    Thank you for choosing TurboTax Live!  I am sorry to hear that you are experiencing this - with the $40 overage above the $10,200 in MA.  The question I have - is whether you have already filed your tax return for 2020, or if you filed your 2020 tax return - prior to the IRS Rule change - where the American Rescue Plan (as passed by Congress) allowed for the $10,2000 exclusion of unemployment from your Adjusted Gross Income?

     

    Can you please provide this detail - so we can best advise you?

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    Donlomb1Author
    September 9, 2021

    I already filed. I qualified for the federal tax exemption. The state of Massachusetts I did not qualify because  my income was $40 over the cap for a single person. 

    Michele_H
    September 9, 2021

    Hi @Donlomb1 , after reviewing this article from MA,  do not see that there is a way around this. 

    https://www.mass.gov/info-details/tax-filing-season-frequently-asked-questions#unemployment-benefits-and-unemployment-fraud-

     

    However I would like to suggest reviewing this article and if you disagree with the states decision on this issue there is a number you can contact listed.

    If  you believe you are eligible for the Massachusetts unemployment deduction, please contact us at (617) 887-6367

     

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