Example:

Betty Fisher filed their tax year 2020 return as single. Betty reported $30,000 of unemployment income and excluded $10,000 notating someone else filed a fraudulent unemployment claim in their name. During the systemic relief process, an adjustment is input to further reduce the unemployment income by $200 for a total of $10,200. As a result, Betty has only benefitted from the exclusion of $200 of the unemployment income received. The amount of unemployment income used for the systemic computation of the exclusion is $19,800 ($30,000 − $10,200).The correct amount of unemployment income for Betty after application of the exclusion is $9,800 ($20,000 − $10,200).To correct the account, the unemployment income must be reduced by an additional $10,000. This will require recomputation of AGI, TXI, tax, and any applicable credits.After verification of the correct return figures, an adjustment must be input to fully resolve the case.

Prior to inputting an adjustment, the valid taxpayer’s tax year 2020 return must be math verified to ensure the unemployment income exclusion has been applied appropriately. Verify income, tax, and credits were computed correctly.