For once, we filed a little early, in early March, when we usually wait until closer to the normal tax day. At the time, my Federal refund showed as $2401.00. Some time later, when I was trying to check status, TurboTax showed my refund would be just over $4000.00. When I looked for details on what I should do, I saw references to how the IRS was already taking the law changes into account and ensuring we got our total refund. Well, it took months, but I finally got my refund, and they sent me $2408.00.
According to TurboTax, I'm owed about $1600 more, how do I go about this, do I have to file an amended return? Can I do that within TurboTax?
Did you have unemployment?
If you have filed early before the exclusion, the IRS will recalculate your return for the new 10,200 unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
Just keep waiting. The IRS is sending them out in batches over the summer.
See IRS article May 14, 2021
Do you need to amend your state return?
If you didn't file early your unemployment compensation will be on Schedule 1 line 7. The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.
The IRS has sent the original refund + some interest. For the rest all you can do is sit tight and wait until they get to your return in the pile up of the MILLIONS they have to recalculate. Sadly there is no way to track it so just be patient.
If you got merely your original refund, and IRS has not done any adjustment for you yet, you should choose to wait to see if IRS sends more over the summer.
An amended return will take even longer than waiting to see what happens
It is still possible that you are due more than IRS calculates, if you become eligible for certain credits.
For those you must amend.
NOTE: you only get one 1040-X e-File in 2020.