Taxes are so confusing.
So last year, like many other people, I had to use UI. And when I filed this year, I included my UI with my income information. TurboTax doesn't let me change the date of payment - because for the first time ever, I have to pay taxes. BUT? For some reason, when I try to amend the return to try and change the date, I'm shown that I am getting refunds?
Se this from the IRS
If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200. If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. Amounts over $10,200 for each individual are still taxable. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation. If you file Form 1040-NR, you can’t exclude any unemployment compensation for your spouse.
Per the IRS, you should not amend your return solely for an adjustment for unemployment. An adjustment will be calculated and your refund will be issued to you automatically, if you qualify. Because the change occurred after some people filed their taxes, the IRS will take steps in the spring and summer to make the appropriate change to their return, which may result in a refund. The first refunds are expected to be made in May and will continue into the summer.
In addition, you can’t change your payment date in TurboTax after your return has been accepted, but you can cancel it and make other payment arrangements with the IRS. Federal tax direct debit payments can be canceled up to 2 business days prior to the debit date. To cancel, call the U.S. Treasury Financial Agent at 888-353-4537. Then, if you need to schedule a new payment, go to the IRS Direct Pay site.
Hi Lena,
Does that mean that the original amount will be debited from my bank account on 4/10/21, and I will be credited the newly amended amount in the future? Thanks
It depends. If you do not cancel the payment with the IRS with the steps I provided above, then the original amount will be debited from your account.
The IRS will take steps in the spring and summer to make the appropriate change to their return. The first refunds are expected to be made in May and will continue into the summer.
IRS to recalculate taxes on unemployment benefits; refunds to start in May