I received a TurboTax email saying"...you will need to file an amended federal tax return." But on web it says "Most taxpayers should not amend for the unemployment tax"

[ediaz7166]

TurboTax, you're telling me to amend my tax return and then telling me to not do anything. I want to know if I should amend for the unemployment tax break or not. Clear and simple.

[RayW7]

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 ...

[cindypetsitter]

Then why did Turbo Tax email us telling us that we needed to amend our returns to get our refund for unemployment taxes already paid?  Seems like Turbo Tax wants us to amend our returns or this is a misleading email.  Why not send and email saying to wait until the IRS sends your refund, then see if a person needs to amend their taxes?  Very confusing email which goes against what was already presented.

[LinaJ2020 · Accepted solution]

The email refers to, other than the unemployment exclusion, if you qualify for any additional credits and deductions due to a lower AGI, you should amend your federal tax return.  If the only reason you amend is the unemployment exclusion, you do not need to amend. 

 For details from the IRS, click here:  No amendment

Per IRS, "There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return."

@cindypetsitter

[fanfare]

@LinaJ2020 

Per IRS, "There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return."

Too bad this is not Per TurboTax, in their email explaining the situation to their users in the email they sent.

[SherryMama]

First I received a message stating to do nothing to get the benefits. Then I week later I received an email saying in order to get the tax breaks I will have to amend.  I logged on to amend and it pops up stating I should wait.  So do I go ahead and amend?  Is there somewhere I can see the amounts of income that will be eligible for additional refund?

[JotikaT2]

The notification to amend is being sent as some taxpayers may actually be entitled to credits that they weren't entitled to before as a result in the reduced amount of taxable unemployment income.

Unemployment claimed on returns already filed

Essentially, if your amended return results in no changes, you do not need to amend your federal return if the only difference is the taxable portion of the unemployment income.  The IRS will automatically issue you a refund for the reduced amount of taxes due on this nontaxable unemployment income.

IRS refunds on unemployment benefits

However, there are some states that do request that you amend your state return for the changes.  Please see the link below to determine if this applies to your return.

State updates to unemployment

If you determine you do need to amend your state return, please see the link below for guidance.

Steps to amend a state return

@SherryMama

[Ashbg80]

Well, I received both emails. The second one telling me to amend. That's what I did on May 1, 2021...I live in Florida and we do not pay state taxes here. Thanks TurboTax, for the false information. Guess I'm screwed now. I'll probably never see that $2600 I paid in on unemployment. I'm not a happy camper and I will never use TurboTax again. So long! I'm sorry I wasted the last 7 years using you to do my taxes. Those emails did nothing but produce confusion. Anyone else go ahead and amended their 2020 returns because of false information given out by this company? Just curious if I'm in this boat alone...

[Kdhenry07]

@Ashbg80 I amended my taxes due to the email as well, now I’m hearing about friends who received direct deposits for the unemployment refund who did not amend returns. Definitely feel like they should have gone over that email and cleared it up for everyone! 

[Midirid]

I also amended mine because the email said I needed to. I had a friend who got her money direct deposited today but I haven't got anything. Also the irs website is saying I'm pending for the advance child credit that I definitely qualify for and I'm wondering if it's because of the amended return. Now I'm thinking I shouldn't have done it

[Ashbg80]

I also did not receive my child tax credit. This is bull**bleep**. I will never use TurboTax again. 

[Critter-3]

The email that was sent did NOT say you MUST amend  ... however it use the word "may"  need to amend "if" certain things applied.   If you choose to amend when it was not required then there is nothing you can do but wait  for the IRS to process the return.  TT cannot help or speed things up for you.

And for the advance of the CTC that just started being sent out if you don't get all you are entitiled to in advance then you will get it on the 2021  tax return.   https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

[Terri297]

Add to that, the Child Tax credit is also on hold as a result. Sickening.

[Midirid]

Actually the exact words in the email I got said I needed to amend. I have reread it many times. It definitely didn't say I may need. 

[Ashbg80]

Thank you! Mine also said that. I have read and re-read my several times and it says due to my tax situation I needed to amend. I have reviewed my "tax situation" and come to find out, I actually did not need to amend anything. TurboTax screwd up...again. As stated in my original post, I have learned my lesson dealing with this company. They have messed my taxes up on other occasions as well. I will never use them again. Period.