A married taxpayer, filing separate returns, who lives in a community property state report one-half of each spouses unemployment compensation on their respective return to take advantage of the exclusion from gross income for unemployment compensation, the IRS stated. As long as the spouse is below the threshold, they report up to $10,200. Married taxpayers filing jointly use a worksheet in Form 1040 to determine the reporting of the unemployment compensation, the IRS provided. [IRS Form 1040]
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