[Anonymous]

The Wiley book is saying that $2,400 of Unemployment Compensation is excluded from Gross Income. Even Phil Yaeger says it himself in his lectures. But the Gleim book and software is saying that ALL of it is included in Gross Income.

Which is right? I’m thinking the Gleim book is correct because it seems to be more accurate and up-to-date on its facts compared to Wiley. But can someone confirm?

[jdiiorio]

Hey I just looked through my notes and the ninja notes and I don't see anything about the $2400. I'm using Becker and take pretty detailed notes. I am going to go with Gleim is right and ALL of it should be included in Gross Income – since it is basically “replacing” or given to the unemployed instead of receiving “wages” or “salaries” it makes sense to me that it would ALL be included.

ILLINOIS CANDIDATE
FAR - Passed
BEC - Passed
AUD - Passed

[Anonymous]

I took REG last window and I remember Unemployment compensation is included in income. Here is link from IRS, to make sure.

https://www.irs.gov/individuals/employees/article/0,,id=130505,00.html

[Anonymous]

Looks like someone else had a similar question 11 months ago.

https://www.another71.com/cpa-exam-forum/topic/tax-on-unemployment

This is why REG is the most frustrating and most difficult part to study for. Anyways, I'll go with Gleim. I'll include all of it in Gross Income. Thanks!

[nolifecpa]

https://www.irs.gov/newsroom/article/0,,id=205633,00.html

you have to exclude $2400, the above was updated Oct. 4, 2011

REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76*,78
FAR-67,66,65,79
AUD-54,60's,65,83*,69,80
*expired

DONE

[Anonymous]

Wow, this is crazy! It says for 2009, so obviously if the questions said, 2009, then I'd exclude $2,400. But let me tell you, the CPA exam does NOT put any years on the exam on any questions. I know because I took the exam last quarter and failed. I remember that NONE of my questions had years. They all used Year 1, Year 2, etc…

So, if an exam question said, “In Year 1, Susan received Wages of $20,000, Alimony of $3,000 and Unemployment Compensation of $4,000, how much is included in Gross Income?”

So, what do I do on the exam if I get a question like that?? Sometimes, I think the CPA exam is a bit unreasonable.

[jeff]

For what it's worth – I think a question like that is beyond the scope of the exam.

[Anonymous]

Well, I don't want to get into any specifics on what was on my exam last quarter due to disclosure rules. But I will say that I did get some questions where I needed to know the year in order to answer, but the year was not given. So, it is very possible that I can get a question like the one above. And that's one of the reasons I failed last quarter. So, I'm preparing for my retake a lot differently now and am preparing for the worst because the worst has happened to me last time. If I do get such a question, I'm just going to assume that they are referring to 2011, unless they specify otherwise. What can I do?

Unemployment Compensation for 2011 in all included in GI, so that's what I'll do on my exam if I get a question like that.

Thanks for your help!

[Anonymous]

no exclusion for 2010, 2,400 was excludable in 2009 only.

[makinthemagic]

UC is included in gross income.

Bec 4/11/11 91
Aud 7/11/11 75
Reg 8/31/11 80
Far 5/24/11 86
Ethics - 98
California Licensed CPA
Illinois Registered CPA

[Anonymous]

Include all of unemployment insurance in Gross Income. The $2400 exclusion was a one year temporary thing for 2009 I believe. We're already at the end of 2011, so I think you're good with including all of it.

[Anonymous]

Funny, in the Wiley book, it says, “STARTING in 2009, $2,400 of Unemployment Compensation can be excluded from Gross Income.” I have a slight hunch that our good friend, Wiley, wrote that in the 2009 book, but when they did away with the exclusion in 2010, they forgot to update that sentence. Figures. Wiley is full of typos and errors. It doesn't surprise me.

I'm guessing since the 2009 exclusion was done away with starting in 2010, the Gleim book was updated properly and that's why it says all of it is included. Now I know why I failed REG. Wiley is full of errors and outdated information. I've caught a few other information that's outdated in the Wiley. IMHO, the Gleim book is so much better. I honestly think Yaeger should switch review books. At least for REG, they should.

Anyways, thanks guys for the help. I think it's safe it include it in GI on the exam.

[ToCPA2011]

Yes I found out some limitations are different on B Law in Wiley as well. Workers Comp is excludible from Gross income, right? I agree the studying time should be spent on correct material not on ambiguous/outdated material. Do you all have good tips on remembering all the phase-out and limitations? I don't seem to retain the information.

[jomarie]

They will not test you on the specifics of current IRS laws. Unemployment compensation is included in gross income. Like mentioned above, in 2009 the first $2400 was excluded, do to the fact of the economy and giving people a little break who was on unemployment. I would include it.

Started sitting in May 2002, on and off. But since 2008 I've been nonstop and my scores are....
AUD - 39, 48, 56, 65, 68, 73, 76!!! (Finally passed in Oct 2011!!!) Becker, NINJA, & Wiley
REG - 75 (Lost Credit) 72, 68, 73, 75 (Passed again in Aug 2011) Becker, NINJA, & Wiley
FAR - 65, 68, 75 (Lost Credit) 68, 73, 73, 80 (Passed again in May 2012) Roger, NINJA, & Wiley
BEC - 65, 68, 71, 72, 72, 71, 76 (Lost Credit)- 70, 76!!!! I AM DONE!!! - Roger, NINJA, & Wiley
After 10 long years of studying, I AM DONE!!!! Finally a Licensed CPA in the State of New York!!

[Anonymous]

@ToCPA2011- Yes, Workers Comp is excludable from GI. Now that, I know.

I think the Gleim book is way better than the Wiley. Everything is up-to-date even though I have the 2011 book. They posted all the updates on their website, so I was able to make the necessary changes on the outdated portions of the book. There's even practice questions on “Multi-Jurisdiction,” which is new material that you need to know. It's funny though. A lot of people say that Gleim isn't all that great because it contains too much fluff that will not be tested, but IMHO, it seems to contain a lot less fluff than the Wiley book. The Gleim book is more to the point and it highlights a lot of the important details that you need to know for the exam. If I had to do it all over again, I'd study for all 4 parts using the Gleim book.

But of course, I could be talking too fast. Let's see how I do on the 18th first…

[ToCPA2011]

I have took a look at CPAexcel book as well. It looks like all the books except Becker are heavy on B-law material. Does it mean more heavily tested than Tax? Anyone knows?

does Reg like FAR, only require to know more topics but only basic knowledge?

[Author]

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