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"

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 ...

 

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.

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

@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.

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?

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

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...

@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! 

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

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

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

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

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. 

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.

I also filed an amended return because turbo tax said to and now my eligibility for the ctc says eligibility pending and I didn’t receive the advance payment and I have not received my unemployment tax refund either. Thank TurboTax for completely screwing me over! Will NEVER use TurboTax again. 

I also received this email and have yet to receive the unemployment tax refund or my child tax credit.  I NEVER had a problem in the past with getting my refunds early via direct deposit and now I see that I have to wait for a check to be mailed.  WE REALLY NEEDED THESE CHILD TAX PAYMENTS.  I sure hope that I don't have to wait until we file out taxes to get any payment.  I am so sad about all this because I ONLY amended my returns after I got the email from turbo tax directing me to do so.  This is really horrible. 

Mine absolutely said I needed to file an amendment not I may have to file an amended return

 

The IRS is seriously behind in processing 2020 tax returns.  This is due to many factors, such as the pandemic, completing processing of millions of 2019 tax returns, stimulus payments, unemployment compensation exclusion tax refunds., changes in the tax code by Congress in the middle of the 2020 tax season and the like.

 

Millions of taxpayers have not yet received there federal tax refunds.

 

Go to this IRS website for operational status - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

 

As of June 23, 2021, we had 17.5 million unprocessed individual returns in the pipeline. Unprocessed returns include tax year 2020 returns such as those requiring correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). This work does not require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund. If, as a result, a correction is made to any RRC, EITC or ACTC claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Where’s My Refund? for their personalized refund status and can review Tax Season Refund Frequently Asked Questions.

The issue has zero to do with the irs delay of processing returns 

Word for Word- copy and pasted from the message I received...  

 

The message  clearly states that in order to qualify for the unemployment refund an amendment will need to be filed.  Hoping that they are just behind and I will see a double payment in August for the child tax credit as well as my tax refund.  When I look on the IRS portal it states that my eligibility is pending and I can only assume it is from the amendment that was approved April 29.  Either way, it's a huge inconvenience and my family really could use this credit as well as the refund.  I would not have altered my original return if I had not received the message from Turbo Tax below.  I have always used Turbo Tax and I have never had a delay in tax refunds or in the stimulus payments from IRS.  UNTIL NOW... 

 

SEE EMAIL TEXT FROM TURBO TAX BELOW... everyone got this message I am sure and it clearly tells us to amend our returns

 

"Dear TurboTax Customer,

We are following up on our earlier email regarding the increased Unemployment benefits. Great news! In addition to the unemployment benefits, you may now be eligible for additional deductions, credits or benefits on your 2020 TurboTax federal return.

Unemployment Income: Based on the recently passed American Rescue Plan, the first $10,200 of your unemployment income may now be tax-free. Since you filed before this law was in place, you could be owed an additional payment from the IRS.

Additional Deductions and Credits: Now that some of your unemployment income is tax free, your Adjusted Gross Income (AGI) may be lower. This means that you could now be eligible for additional deductions and credits.

In order to claim these additional deductions and credits, you will need to file an amended federal tax return. However, you do not need to file an amended state return at this time."

Thankyou for pasting the email.  Read the first part of that sentence.  In order to claim the additional deductions and credits.....  it doesn't mean just to claim the new 10,200 exemption.  The IRS will recalculate your return for that.  

I got the same exact email, so I amended my 2020 tax return and it still says pending almost 3 months later.  I didn't receive the advanced child tax credit.  I'm so upset with Turbotax.  We really need this money.  I regret amending my tax return and will never do my taxes with them again.  I never had any problems.  I'm so unhappy.  I feel like all of us who amended our taxes, due to the email that they sent us really got screwed.  

Again  ... the email did NOT say you needed to amend for the unemployment change ... only if there were OTHER changes that affected your return.  So if you  filed an amended return there is nothing you can do now but wait for the IRS to process the original  return and eventually the amended return (if they will not send it back for errors on column A) ... don't really know how they will handle this filing error yet.  

 

 

 

"Dear TurboTax Customer,

We are following up on our earlier email regarding the increased Unemployment benefits. Great news! In addition to the unemployment benefits, you

may now be eligible

for additional deductions, credits or benefits on your 2020 TurboTax federal return.

Unemployment Income: Based on the recently passed American Rescue Plan, the first $10,200 of your unemployment income may now be tax-free. Since you filed before this law was in place, you

could be owed

an additional payment from the IRS.

Additional Deductions and Credits:

 Now that some of your unemployment income is tax free, your Adjusted Gross Income (AGI) may be lower. This means that you

could now be eligible

for additional deductions and credits.

In order to claim these additional deductions and credits

, you will need to file an amended federal tax return. However, you do not need to file an amended state return at this time."

@jmansf

 

Can you post the original email ?  What you posted was a follow up email.