Amended 2020 filing looks incorrect

[njfiddler54]

I recently learned about how to deduct HRA reimbursements for 2021. That triggered the need to amend my 2020 return, which I did following the instructions using TT 2020 and the Amend button on the home screen. I modified my medical expense numbers, and said that was all I needed to amend. I previewed my filing as a pdf, and noticed that in addition to reducing my overall itemized deduction (as expected), my AGI was reduced by $10,200, with the result being I am owed a refund of $1038. This makes no sense to me; I expected to need to pay a few hundred dollars back of the refund I received last year.

How can I resolve this discrepancy?

[AnnetteB6]

Here is a possible scenario for your situation.

The American Rescue Plan was passed in early 2021 and affected whether or not all unemployment benefits were taxable on your return.  Specifically, if qualified, up to $10,200 of unemployment benefits were excluded from Federal income tax.

If you received unemployment benefits in 2020 and you filed your return prior to the passing of the American Rescue Plan, then amending your return using TurboTax could be making that correction for you and including the additional refund.  However, the IRS would have been automatically making those corrections in the event that you filed your return prior to the bill passing and you may have already received the benefit and a letter from the IRS explaining it.  

You can file the amended return as it stands and if you are owed the additional refund based on the IRS records, then you will receive it when the amendment is processed.  Otherwise, you will receive a letter of explanation from the IRS with a voucher to pay the balance due that you expected to owe.  

To learn more, take a look at the IRS Fact Sheet regarding 2020 unemployment compensation exclusion.

[johnfeaver]

Thanks, I believe this describes my scenario exactly!