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andreahall03
Level 1

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

 
10 Replies
Mike9241
Level 15

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

was the EITC claimed on the original return? if so, the refund should have included the adjustment for it.  if not you'll need to file an amended return.   

https://turbotax.intuit.com/tax-tips/amend-return/how-to-file-an-amended-return-with-the-irs/L6kO691... 

 

you'll need to include the EIC schedule with the return.

make sure that line 8 on the 1040 reflects the UC exclusion 

and that the refund already received is reflected on line 18 of 1040-x

other lines may change because of the reduction in adjusted gross income

 

expect this process to take 4 months or more.

 

 

 

Critter-3
Level 15

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

This is going to be messy this year ... you have to get column A of the amended return to reflect the IRS change without the program giving you the EIC ... this can only really be done using the downloaded version so you can make the change in the FORMS mode. 

 

Contact TT support for one on one instructions for this situation.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

fanfare
Level 15

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

"This is going to be messy this year"

@Critter-3  Why??

Open the return you filed and click AMEND.

The return should automatically show 

a) your reduced taxable UE.

b) your EIC.

 

You're done.  Print (or e-file )the 1040-X. IRS will take note that you already got some UE refund and subtract that as an adjustment.
If it doesn't work that way, there's something seriously wrong about TurboTax and you shouldn't be a customer.

 

As you can see, I didn't use  TurboTax so I'm making some assumptions.

Critter-3
Level 15

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

@fanfare 

 

Opening the program doesn't automatically change the unemployment since they reverted the online returns back to how they were originally filed ... this forces you to revisit the unemployment section  to update it then the program automatically computes the EIC or CTC based off that change before you can start the amendment process.  

fanfare
Level 15

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

  1. start the amendment process.
  2. revisit the unemployment section
  3. the program automatically computes the EIC
Critter-3
Level 15

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

But since the 1040X column A must start with the return as corrected by the IRS  if you just start the amendment process before you correct column A then the bottom line will not be correct.  This could give the user the impression that they are going to get a bigger refund then they are entitled to  and  it is unknown at this time if the  IRS  will mail it back for the user to correct   or make the needed changes themselves. 

fanfare
Level 15

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

If your 1040 is incorrect, do they send it back to you to be corrected and refiled??
Of course not.

Same goes for 1040-X.

They know they already refunded the UCE portion, and your 1040-X overpayment(refund) will be adjusted.

 

P.S.

My niece is waiting for a 1040-X and an adjusted reduced refund for exactly this scenario.

They're not going to return her 1040-X to her. Besides, she e-Filed it.

Critter-3
Level 15

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

My answer is based on the 1040X instructions for column A and the years I taught tax prep classes on the subject.  The IRS rule is :  Column A  needs to reflect the must current information which is the info off the original return or  as corrected by the IRS.   So since the IRS is making the correction this year getting column A corrected to reflect the unemployment change but to not add the credits before amending the return could be problematic since column B will not be correct  OR  column A will be wrong because  the TT program computes credit  changes automatically when you correct the income... hence "messy".  

 

This is a very unusual situation this year that has affected millions of returns and the IRS is making this up as they go  so who knows what they are going to do ... it's a wait and see.   Post back  if your nieces column A is incorrect  and let us know which direction the IRS takes for this situation (and PPS you know very well they can accept the efiled amended return "for processing"  but then decline it in processing  or return it thru a notice in the mail )... who knows if they will make the adjustment themselves or send out millions of notices asking for a correct 1040X.  It is going to be  a long bumpy road I fear. 

 

andreahall03
Level 1

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

Critter-3 is correct in that column A line 18 is not correct on my amended return.  My finance worked as an accountant for a couple years in the mid 2000's so he has a little bit of idea of what he is looking at.  Line 18 was effectively change in the IRS refund of my unemployment refund I received last month.  I have tried many different ways to fix online version, but it does not appear that I can do that online. I think the downloaded desktop version is the way to go to fix it.

 

I am having problems with downloading the desktop version because my credit I used when I filed in February has expired, it keeps give me a credit card error for $0 download but no place enter the credit card info.  I tried to buy another version and update my credit card, and then remove that software to try to trick the system into taking the new credit card, but that doesn't work either. I will have to call tech support during the week to fix it.

andreahall03
Level 1

I received an additional refund in July for unemployment, but I am now eligible for EITC. How am I suppose to enter that information when I amend my return?

Just as follow up.  I used the turbotax desktop version and I had to use the forms view to override and correct the amount so it would accurately reflect what the IRS sent me. I ended up calling Turbotax for an issue with downloading the desktop version and they agree that was right course of action.

 

For 1040X form, on line 8 for tax liability I could not edit it directly and so I subtracted subtract the (IRS unemployment refund amount) value from line 6 in that section.  I also had to edit to add the IRS refund amount to Line A of the Overpayment Smart Sheet section for the refund to be correct.

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