Amending a return due to corrected Unemployment Comp

[vballerfromSD]

I received unemployment in 2020. Filed my claim before 15 March, but IRS hasn't corrected it yet (my taxes were complicated, self-employed, withdrawal from 401k, etc.). A month later I received a corrected 1099G from the state for the unemployment (Approx. $2,000 more). Should I wait for the IRS to first complete their correction before filing an amended return?

[rjs · Accepted solution]

Yes, you should wait until the IRS recalculates your original return and you get the additional refund. Filing an amended return before that would cause a great deal of confusion that would take a long time to straighten out.

Since the IRS gets a copy of the corrected 1099-G, it's possible that they will take that into consideration. You just have to wait and see what happens.

[vballerfromSD]

The IRS completed the UC recalculation and I will receive the refund tomorrow (YAY!!). Does my original 1040 and related forms/data get corrected in TurboTax also??

I only ask because I will need to file an amended return since the IRS did not use the updated amount from the corrected 1099-G (my original post). I would like to e-file via TurboTax and I'm not sure how the recalculation affects that process.

[rjs]

If you open your filed return in TurboTax, before you start to amend it, I think you will find that it has recalculated it for the unemployment exclusion. It should match what the IRS did.

To open your return, at the Tax Home or in the section Your Tax Returns & Documents for 2020, look for a link "Add a State." Click on Add a State. You don't actually add a state. This is just a way to get back to your 2020 online tax return after it has been filed.

[vballerfromSD]

Thank you!