Do I need to amend my federal taxes for the Amerian rescue plan regarding the increased Unemployment benefits?

[debbie-winegar]

I had already filed my tax returns but now Im not sure what I am supposed to do. I tried going on TT to amend but it does not seem to be changing any thing what should I do?

[RayW7 · Accepted solution]

If this is related to the unemployment exclusion then you should wait until the IRS has updated your return before filing an amended return.  It's possible that you may only need to amend the state return.

The IRS has asked that taxpayers not amend for the unemployment exclusion, unless the unemployment tax break makes them newly eligible for tax benefits like the earned income tax credit.

• If you already filed your 2020 tax return, you do not need to do anything to get these additional unemployment benefits. The IRS announced that they will automatically adjust your return and send any additional refund amount directly to you. However, some people may now be newly eligible for additional deductions and credits not already included on the original tax return. In these cases, you will likely want to amend your return to claim these additional dollars. Additional information on this is below.

-follow this link for additional information-

I need to amend my state return - TurboTax

Unemployment Stimulus: Am I Eligible for the New ...

[HFS1013]

Today, I when in to my 2020 turbo tax program to trying and estimate the refund I would receive from the IRS since my $9,930 of unemployment compensation is no longer taxable. When I remove the Unemployment compensation instead of my federal taxes decreasing they increased by $1,000 when I when back to the program and add the $9,930 UEC back  to my income the higher figures remained.

There must be something wrong with the program.

[VolvoGirl]

@HFS1013 Did you have any withholding from the unemployment?  Do not delete the 1099G for Unemployment.  The program has been updated for the 10,200 exclusion.  Just make sure your program is updated.  

Are you using the Desktop program?  Go to Forms Mode and look and schedule 1.

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.