Your unemployment was required to be entered on your tax return. So you made a mistake and now it will have to be fixed.
Did you click that big orange button that said “Transmit my return now?” If you did that, you cannot do anything to fix it yet. The IRS will begin to accept/reject 2020 returns on January 27. You have to wait for the email that tells you if your return was accepted or rejected. If you do not see an email, check your spam folder.
Filing before you have all of your information causes you a lot of aggravation that could be avoided if you just wait until you have everything first and then take your time preparing your return so you do not mess it up because of a rush to get a refund.
You cannot change or add anything on the return that you just e-filed, nor can you stop it. It is too late, just like when you put an envelope in a US mailbox on the corner.
If you left out a W-2, or a dependent, or a 1099 etc…DO NOT change your return while it is pending. The changes will go nowhere.
Now you have to wait until the IRS either rejects or accepts your return. If your return is rejected, you will be able to go into your account and make the necessary changes to your tax return and re-submit your return.
If the IRS accepts your return, however, then you have to wait longer until it has been fully processed and you have received your refund. THEN you can prepare an amended tax return and mail it in. You have to be able to work from that return exactly the way it was when it was e-filed originally. You will need to use a form called a 1040X. return.
Meanwhile, DO NOT go in and start changing anything on your return in the system, or you will make a mess for yourself. Sit tight and wait until you see what the IRS does with the return you just e-filed
Unemployment compensation is taxable on your federal return. Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment
Go through the screens very carefully to enter any federal/state tax you had withheld from the unemployment
You might need to get your 1099G from the state’s unemployment site when it becomes available in January. You will need to use the same password etc that you use to certify for weekly benefits
STATES THAT TAX UNEMPLOYMENT BENEFITS
AZ, AR, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, ME, MD, MI, MN, MS, MO, NB, NM, NY,NC, ND, OH, OK, OR, RI, SC, UT, VT, WV, WI
Unemployment compensation is taxable on your federal return. Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment. You might need to get your 1099G from the state’s unemployment site.
STATES THAT DO NOT TAX UNEMPLOYMENT BENEFITS on the state return
AK, CA, FL, MT, NH, NJ, NV ,PA, SD, TN, TX, VA, WA, WY
You will need to wait for the IRS to either accept or reject the 2020 e-filed tax return.
If the IRS rejects the tax return then you can add in the unemployment and taxes withheld and e-file again.
If the IRS accepts the tax return then you will have to wait for the IRS to process your tax return and issue your refund or process your tax payment. Then you will have to amend the 2020 tax return that was filed to make changes to the filed tax return. Once the amended tax return is filed it will take 4 months or longer for the IRS to process the federal amended tax return.