MFJ UI Exclusion - Spidell

MFJ UI Exclusion

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Message Board MFJ UI Exclusion

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    • #305232
      Dorothy Hamilton
      Participant

      Just wanted to confirm with anyone who has done the MFJ UI exclusion for couples in community property states since we got the latest IRS update on 5/26/21. Our software (Ultra Tax) has not updated their software to give each spouse the $10,200 exclusion even if one spouse received more than that. (And from the sound of it, it doesn’t seem like our software is going to do any other updates on UI)

       

      Example: We have one couple where taxpayer got 4,500 and spouse got 24,295. Would you add the two together and just divide by two and allocate the same amount to each spouse? 14,397.50 and 14,397.50? Or would you allocate 10,200 to one spouse and 18,595 to the other? Does it matter?

       

       

    • #305293
      Sandy Weiner
      Participant

      You add the two together and just divide by two and allocate the same amount to each spouse? 14,397.50 and 14,397.50?

    • #305303
      Leonard Tramonte
      Participant

      Has anyone’s software made the update for the Community Property States on the MFJ UI Exclusion?
      We use CCH ProSystem fx and we are still waiting for an answer as to whether they will be making an update or not.
      If anyone knows, please let us know and if anyone is using software that has already received this update, what software do you use?

    • #305308
      Diane Kiefer
      Participant

      Yes, Lacerte has made the update and gives the full $20,400 exclusion regardless of which person received the UI.

      • #305330
        Leonard Tramonte
        Participant

        Thank you Diane for your reply, it is much appreciated.

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