If we e-filed through TurboTax before the 2020 tax break on unemployment benefits was implemented and the IRS automatically corrected our tax return/requested we not file an amendment, how are the corrections made by the IRS being updated in TurboTax to ensure our 2020 tax return is accurate: 1) For other purposes, ie: submitting with current FAFSA applications; and 2) When utilized to prepare 2021 tax returns? Should we create and use an amended return but not actually file it or does the IRS/TurboTax further facilitate this?
The refund of the tax paid on the first $10,200 of unemployment did not change the fact the unemployment was part of your income. You can use your return as it was filed for FAFSA. You had the same amount of income and just paid less income tax on it.