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imjdg1
New Member

Do i have to amend my return (submitted in January) now that I qualify for the earned income credit after the new unemployment tax exemption went into effect?

 
2 Best answer

Accepted Solutions
DaveF1006
Employee Tax Expert

Do i have to amend my return (submitted in January) now that I qualify for the earned income credit after the new unemployment tax exemption went into effect?

Yes, according to this IRS link, you will need to amend if the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return. To amend.

  1. Sign in to TurboTax.
  2. Scroll down to under Your tax returns & documents,
  3. Select Amend (change) 2020 return,
  4. Then Start amending my 2020 return.
  5. Then, select the reason you’re amending and follow the onscreen instructions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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SweetieJean
Level 15

Do i have to amend my return (submitted in January) now that I qualify for the earned income credit after the new unemployment tax exemption went into effect?

You generally do not need to amend for Federal.

 

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 Servic...

See these re State:

The states still taxing unemployment benefits, despite federal relief (usatoday.com)

How is my state taxing unemployment income? (intuit.com)

Do I need to amend my state return to update my un... (intuit.com)

View solution in original post

2 Replies
DaveF1006
Employee Tax Expert

Do i have to amend my return (submitted in January) now that I qualify for the earned income credit after the new unemployment tax exemption went into effect?

Yes, according to this IRS link, you will need to amend if the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return. To amend.

  1. Sign in to TurboTax.
  2. Scroll down to under Your tax returns & documents,
  3. Select Amend (change) 2020 return,
  4. Then Start amending my 2020 return.
  5. Then, select the reason you’re amending and follow the onscreen instructions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

SweetieJean
Level 15

Do i have to amend my return (submitted in January) now that I qualify for the earned income credit after the new unemployment tax exemption went into effect?

You generally do not need to amend for Federal.

 

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 Servic...

See these re State:

The states still taxing unemployment benefits, despite federal relief (usatoday.com)

How is my state taxing unemployment income? (intuit.com)

Do I need to amend my state return to update my un... (intuit.com)

View solution in original post

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