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Anyone who received unemployment compensation during 2009 AND files an IT-40 EZ tax return on paper should know the unemployment compensation deduction worksheet printed on page 5 of the 2009 IT-40EZ instruction booklet has two errors.
These errors only affect those individuals who file an IT-40 EZ tax return on paper. For those who file Form IT-40EZ electronically (use a paid preparer or use tax preparation software), the worksheets are accurate.
However, if a taxpayer does file an IT-40EZ on paper, and uses a worksheet from the printed IT-40EZ tax booklet, here are the corrections he/she needs to know about:
We have corrected the worksheet that is posted on our Web site. To view it click here.
It is important for taxpayers to know that if they file an IT-40EZ on paper and report unemployment compensation, the Department will check their math to ensure they receive the full deduction they are entitled to claim.