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Level 2
posted Apr 25, 2021 10:52:40 PM

$10200 UCE - Amend now or wait for additional credits

I filed my 2020 return with unemployment prior to the American Rescue Plan and will qualify for an additional tax credit not previously reported on their initial return (Retirement Savings Contributions Credit) because of my lower AGI.

I know I'll have to amend to get the credit not originally reported. But is it wise to patiently wait for the IRS to automatically correct the $10,200 unemployment first and let the client get a partial additional refund and THEN later amend? Or amend right away, claiming both the UCE and the new credit on the amendment?

I'm just worried that if I do the latter, it will create some kind of confusion with the IRS and delay things even further.
 

0 2 430
2 Replies
Level 15
Apr 25, 2021 10:56:50 PM

the IRS says not to amend.  it will compute the refund.  filing an amended return when not wanted could actually delay your refund. 

Expert Alumni
Apr 29, 2021 8:20:18 PM

Let the IRS adjust your return, if your income will be below $150,000. The IRS will adjust if a credit is  already on the return.

 

If not, you would need to amend for credit. Only amend if the credit is not on your return and should be - after the IRS is done.

 

 Some credits:

 

Earned Income Credit eligibility:

The greater of AGI or earned income must be less than:

  • $15,820 ($21,710 for MFJ) with no qualifying children,
  • $41,756 ($47,646 for MFJ) with one qualifying child,
  • $47,440 ($53,330 for MFJ) with two qualifying children, or•$50,954 ($56,844 for MFJ) with three or more qualifying children. 

Child Tax Credit

 

Education credit, retirement savings and more!