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Level 2
posted Apr 12, 2021 1:48:35 PM

Amend 2020 taxes with unemployment to add EITC

Hi, what is the current timeline to amend 2020 taxes for someone who is now eligible for the EITC tax credit, after the reduction in unemployment taxes? Please don't blame the IRS, I and others have already talked to the IRS and they all say it's ready on their end. 

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1 Best answer
Level 3
Apr 23, 2021 7:33:36 AM

For anyone that's been waiting to amend their 2020 return in order to claim credits that are now available due to the unemployment tax breaks in the American Rescue Plan, TurboTax is now allowing those returns to be amended. Just efiled mine a couple minutes ago. 

4 Replies
Level 15
Apr 12, 2021 1:55:55 PM

Per the IRS:

However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits, but now are eligible because the [unemployment comp] exclusion changed their income.  These taxpayers may want to review their state tax returns as well.

IRS to recalculate taxes on unemployment benefits; refunds to start in May | Internal Revenue Service

 

As far as I know, they are treating these (EITC) the same as any other 1040-X amended return. That is, plan on 16 weeks. Also see:

Amended Return Frequently Asked Questions | Internal Revenue Service (irs.gov)

Level 2
Apr 12, 2021 2:26:03 PM

Yes I am aware of all of that. But when will Turbo Tax Software allow for amending the returns? It starts to load the amend and than says it's not currently available.

Level 3
Apr 23, 2021 7:33:36 AM

For anyone that's been waiting to amend their 2020 return in order to claim credits that are now available due to the unemployment tax breaks in the American Rescue Plan, TurboTax is now allowing those returns to be amended. Just efiled mine a couple minutes ago. 

Level 2
Apr 23, 2021 9:17:47 AM

LEGENDARY!!! Thanks, I just started to amend my returns. Thanks again and have a wonderful day.