In between filing and paying question RE: unemployment

Forum|Forum|5 years ago
March 21, 2021
1 reply
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I have asked this question elsewhere but because of the answers I believe I didn't make my situation clear enough or the "expert" advise I did get was a responce from a computer. If a human is reading this question please see my unusual situation.

I have already configured and submitted my 2020 taxes through Turbotax in late January 2021, before the passing of the American recovery act. That accounting included substantial unemployment income which resulted in my owing aprox 2K to fed and Oregon combined. I usually get a refund from both. The submissions were accepted by fed and state and my plan was to pay sometime before the due date. Now that the American Rescue act has been passed including tax forgiveness of the first $10,200 of 2020 unemployment income, I am having trouble finding advice an my exact situation. I understand that the IRS is telling people with unemployment income, who have filed and paid, to wait for a refund. I also understand that the advice to those who have not filed at all is to wait for further instructions before submitting anything. My problem is I have filed (or submitted) my returns but have not paid. Should I expect the IRS and state revenue board or Turbotax to contact me about amending my unpaid returns? It doesn't make sense to me to pay my taxes as is and then wait for any refund, but that may be the best plan of action. I don't know what to do and need expert advice for my particular situation. Thanks in advance. Respectfully, ORG

sls50211

Level 9

Good news your tax is not due until 5/17 now. TurboTax, like other tax software providers, are waiting for guidance from the IRS on unemployment, Premium tax credit, child tax credit, dependent care credit, and many other provision in the new law. The TurboTax 2020 unemployment update for the American Rescue Plan is now active in TurboTax Online. I would still wait for IRS/TurboTax guidance but you have the option to amend your return in TurboTax and exclude the $10,200 in benefits if your income is under the $150,000 threshold. Either way, I would not pay the additional tax if you do not owe it under the new law. You will want to check with your state taxing authority if they coupled with the unemployment provisions in the Act.

If you need to do an amended return, go to you tax home then scroll down to "Your tax returns and documents" then show. Select the year in question then the amend return in the right column. Follow the steps to amend a previous year's return.

oldraygunAuthor

Level 2

Thank you. I am seeing in the news that the IRS is asking people not to file an amended return but that must be for those who have already paid. I will try this. Thanks again.