FTB Update on Unemployment Compensation Exclusion (UCE)
FTB will be correcting accounts for specific taxpayers who filed their state return prior to the IRS’ revision to exclude unemployment compensation. The accounts FTB will be correcting are for those who fit into the following category:
A taxpayer who filed a return and claimed the CalEITC and also has unemployment compensation. There is no need for these specific taxpayers to amend their returns. Beginning this summer, FTB will be adjusting these returns to appropriately reflect the UCE.
If the taxpayer’s return reflects an additional credit amount, FTB will issue a refund or a credit to another outstanding balance due. No action is necessary for these specific taxpayers to receive the additional credit due to the UCE. FTB will be posting updated information to its website in the near future.