Unemployment Tax Deductible?

Discussion in 'Tax' started by Marvin Israel, Feb 3, 2005.

  1. My PA W2 box 14 has "PA SUI" in it. I assume this is "state
    unemployment insurance." Does this qualify for itemized
    deduction in both federal and state return?



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    Marvin Israel, Feb 3, 2005
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  2. Marvin Israel

    CBotella Guest

    SUI qualifies for a federal deduction on Schedule A, if you
    itemize.

    However, for PA which has a "flat" tax, there is no
    deduction allowed for taxes paid.

    Kate, EA in PA

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    CBotella, Feb 9, 2005
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  3. Marvin Israel

    WaltA Guest

    I have lived in PA for a dozen years. This is the first
    time I have had anything in Box 14 on my W2.

    Just like you, this year I have "PA SUI".

    I am clueless as what to do with it.

    Even the TurboTax program is clueless, and is actually
    asking ME for TAX guidance. It offers suggestions for
    several other states, but nothing for PA!

    What the heck do you do with "PA SUI"????

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    WaltA, Feb 9, 2005
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  4. Marvin Israel

    A.G. Kalman Guest

    CBotella wrote:

    > SUI qualifies for a federal deduction on Schedule A, if you
    > itemize.
    >
    > However, for PA which has a "flat" tax, there is no
    > deduction allowed for taxes paid.


    If PA SUI is deductible, as you say, as a state income tax,
    why does the IRS specifically identify only the following
    five state plans as meeting the definition of a deductible
    income tax?

    • Mandatory contributions you made to the California, New
    Jersey, or New York Nonoccupational Disability Benefit Fund,
    Rhode Island Temporary Disability Benefit Fund, or
    Washington State Supplemental Workmen's Compensation Fund.

    --
    Alan
    http://taxtopics.net

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    A.G. Kalman, Feb 10, 2005
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  5. Marvin Israel

    JMc Guest

    > I have lived in PA for a dozen years. This is the first
    > time I have had anything in Box 14 on my W2.
    >
    > Just like you, this year I have "PA SUI".
    >
    > I am clueless as what to do with it.
    >
    > Even the TurboTax program is clueless, and is actually
    > asking ME for TAX guidance. It offers suggestions for
    > several other states, but nothing for PA!
    >
    > What the heck do you do with "PA SUI"????


    I throw it Other Taxes along with the OPT and OST.

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    JMc, Feb 10, 2005
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  6. Marvin Israel

    A.G. Kalman Guest

    A.G. Kalman wrote:
    > CBotella wrote:


    >> SUI qualifies for a federal deduction on Schedule A, if you
    >> itemize.
    >>
    >> However, for PA which has a "flat" tax, there is no
    >> deduction allowed for taxes paid.


    > If PA SUI is deductible, as you say, as a state income tax,
    > why does the IRS specifically identify only the following
    > five state plans as meeting the definition of a deductible
    > income tax?
    >
    > • Mandatory contributions you made to the California, New
    > Jersey, or New York Nonoccupational Disability Benefit Fund,
    > Rhode Island Temporary Disability Benefit Fund, or
    > Washington State Supplemental Workmen's Compensation Fund.


    Whoops.... Misread the big word that said "Unemployment."
    Thought it said "Disability."

    --
    Alan
    http://taxtopics.net

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    A.G. Kalman, Feb 11, 2005
    #6
  7. A.G. Kalman wrote:
    > CBotella wrote:


    >> SUI qualifies for a federal deduction on Schedule A, if you
    >> itemize.
    >>
    >> However, for PA which has a "flat" tax, there is no
    >> deduction allowed for taxes paid.


    > If PA SUI is deductible, as you say, as a state income tax,
    > why does the IRS specifically identify only the following
    > five state plans as meeting the definition of a deductible
    > income tax?
    >
    > • Mandatory contributions you made to the California, New
    > Jersey, or New York Nonoccupational Disability Benefit Fund,
    > Rhode Island Temporary Disability Benefit Fund, or
    > Washington State Supplemental Workmen's Compensation Fund.


    Yeah! Helen? what about it?

    IMWTK

    ChEAr$,
    Harlan Lunsford, EA n LA
    Thu 10 Feb 2005

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    Harlan Lunsford, Feb 11, 2005
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  8. Marvin Israel

    kevbo Guest

    This is from the State of PA Dept of Revenue website that
    states that 'YES, it is a Federal Deduction.' Link below
    for you to confirm.

    http://www.dli.state.pa.us/landi/cwp/view.asp?a=152&q=205138

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    kevbo, Feb 14, 2005
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  9. Marvin Israel

    Bernard S Guest

    "A.G. Kalman" <> wrote:
    > CBotella wrote:


    >> SUI qualifies for a federal deduction on Schedule A, if you
    >> itemize.
    >>
    >> However, for PA which has a "flat" tax, there is no
    >> deduction allowed for taxes paid.


    > If PA SUI is deductible, as you say, as a state income tax,
    > why does the IRS specifically identify only the following
    > five state plans as meeting the definition of a deductible
    > income tax?
    >
    > . Mandatory contributions you made to the California, New
    > Jersey, or New York Nonoccupational Disability Benefit Fund,
    > Rhode Island Temporary Disability Benefit Fund, or
    > Washington State Supplemental Workmen's Compensation Fund.


    Unemployment insurance is totally employer paid. A small
    portion in industrial insurance is paid by the employee.
    Industrial insurance is not, in anyway, the same as
    unemployment insurance.

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    Bernard S, Feb 14, 2005
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  10. Marvin Israel

    A.G. Kalman Guest

    kevbo wrote:

    > This is from the State of PA Dept of Revenue website that
    > states that 'YES, it is a Federal Deduction.' Link below
    > for you to confirm.
    >
    > http://www.dli.state.pa.us/landi/cwp/view.asp?a=152&q=205138


    The document states that the IRS agreed to allow it as an
    itemized deduction. It doesn't say to deduct it as a state
    income tax. If anything, it sounds like a misc. itemized
    deduction subject to the 2% AGI limitation (expense to
    produce taxable income).

    --
    Alan
    http://taxtopics.net

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    A.G. Kalman, Feb 15, 2005
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  11. Marvin Israel

    Jon Guest

    A.G. Kalman wrote:
    > kevbo wrote:


    >> This is from the State of PA Dept of Revenue website that
    >> states that 'YES, it is a Federal Deduction.' Link below
    >> for you to confirm.
    >>
    >> http://www.dli.state.pa.us/landi/cwp/view.asp?a=152&q=205138


    > The document states that the IRS agreed to allow it as an
    > itemized deduction. It doesn't say to deduct it as a state
    > income tax. If anything, it sounds like a misc. itemized
    > deduction subject to the 2% AGI limitation (expense to
    > produce taxable income).


    PA SUI is manditory and based on a percentage of income
    which is federally taxable. Therefore it fits the general
    description of a deductible state income tax (Line 5, Sched.
    A, Form 1040). (It is clearly not deductile for PA state
    income tax. Hardly anything is.) The IRS choose to identify
    some state disability taxes without saying "includes but is
    not limited to."

    I think the PA SUI is relatively new in that it's rate
    changes year-to-year and for several years prior the rate
    has been 0%.

    Jon

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    Jon, Feb 27, 2005
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  12. Marvin Israel

    Bernard S Guest

    "Jon" <> wrote:
    > A.G. Kalman wrote:
    >> kevbo wrote:


    >>> This is from the State of PA Dept of Revenue website that
    >>> states that 'YES, it is a Federal Deduction.' Link below
    >>> for you to confirm.
    >>>
    >>> http://www.dli.state.pa.us/landi/cwp/view.asp?a=152&q=205138


    >> The document states that the IRS agreed to allow it as an
    >> itemized deduction. It doesn't say to deduct it as a state
    >> income tax. If anything, it sounds like a misc. itemized
    >> deduction subject to the 2% AGI limitation (expense to
    >> produce taxable income).


    > PA SUI is manditory and based on a percentage of income
    > which is federally taxable. Therefore it fits the general
    > description of a deductible state income tax (Line 5, Sched.
    > A, Form 1040). (It is clearly not deductile for PA state
    > income tax. Hardly anything is.) The IRS choose to identify
    > some state disability taxes without saying "includes but is
    > not limited to."
    >
    > I think the PA SUI is relatively new in that it's rate
    > changes year-to-year and for several years prior the rate
    > has been 0%.


    Is there a confusion here between state unemployment
    insurance and a small portion of workmen compensation
    insurance. Unemployment insurance is not charged to the
    employee.

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    Bernard S, Mar 4, 2005
    #12
  13. Marvin Israel

    JMc Guest

    >> I think the PA SUI is relatively new in that it's rate
    >> changes year-to-year and for several years prior the rate
    >> has been 0%.


    > Is there a confusion here between state unemployment
    > insurance and a small portion of workmen compensation
    > insurance. Unemployment insurance is not charged to the
    > employee.


    PA SUI is not new. I belive in the early 90's PA SUI
    withholding was required. From what I understand, PA SUI
    withholding is required once the overall UC Fund hits a
    certain level.

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    JMc, Mar 7, 2005
    #13
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