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Unemployment Tax Deductible?

 
 
Marvin Israel
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      02-03-2005, 05:49 PM
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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CBotella
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      02-09-2005, 03:20 AM
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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WaltA
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      02-09-2005, 05:14 AM
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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A.G. Kalman
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      02-10-2005, 05:35 AM
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.

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Alan
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JMc
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      02-10-2005, 09:05 AM
> 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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A.G. Kalman
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      02-11-2005, 07:45 AM
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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Harlan Lunsford
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      02-11-2005, 08:04 AM
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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kevbo
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      02-14-2005, 12:31 AM
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...a=152&q=205138

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Bernard S
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      02-14-2005, 01:28 AM
"A.G. Kalman" <(E-Mail Removed)> 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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A.G. Kalman
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      02-15-2005, 07:47 AM
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...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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