My already-filed return will need to be recalculated both for the unemployment exclusion, and the excess advance PTC repayment. I now qualify for Additional Child Tax Credit which was not originally present. IRS has stated that new credits cannot be recalculated, giving EITC as an example case that would need to be amended. However, the Additional Child Tax Credit is only replacing the lost part of the Child Tax Credit, so the amount of credit overall does not change.
So, what is the consensus: when they recalculate, will IRS reduce the Child Tax Credit and fail to add back the Additional Child Tax Credit because it is a new form? Amend now or wait and see?
If your tax return contains unemployment and a credit, the IRS will adjust both. See IRS to recalculate taxes on unemployment benefits; refunds to start in May If your return has unemployment but you now qualify for an additional credit, then you should amend your return.
Here are some credits for which you may now qualify:
In addition, you may need to amend your state return. See Do I need to amend my state return to update my unemployment?
Once your original return is accepted and the finances are settled, you can file an amended return.