Changes to what I owe due to increased unemployment forgiveness

[lkulwicki]

I filed in February and all was good.  Due to the American Recovery Act I now owe less because of increased forgiveness in unemployment.  The article referenced waiting until after May for an additional refund, but it does not address how or when to pay the lesser amount now owed.  I was going to send a check but am not sure how or when to proceed.  

[Cass0317]

Please see the information below regarding the Unemployment benefits:

If you've already filed your return, the IRS says you don’t need to do anything to take advantage of this benefit. They've assured us there's no faster way to get any additional money you are owed. In fact, amending your return could delay your payment.

How do I claim the new unemployment benefits in TurboTax?

[VolvoGirl]

IRS will recalculate your return for the new unemployment exemption if you already filed
https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[lkulwicki]

I understand that if you are getting a refund, however I owe the federal government.  I have printed a new voucher that says I owe less than when I originally filed electronically.  My question is really do I need to send any other paperwork by mail with that voucher when I pay the tax?  I am, however, getting a larger refund from the State of Michigan than I originally got and understand states are still trying to figure this out.

[lkulwicki]

I sent in the amount I owe after updating my returns with the increased unemployment forgiveness as reference in the articles you sent.  It said do not send an amended return, that the IRS would recalculate for me.  Now I am being billed, with interest, for money they say I owe as if the unemployment forgiveness never happened.  I only sent the payment voucher, not copies of my return as I had already efiled.  Have called the number on the form and of course due to overwhelming call volume they could not take call and they hung up.  My printed copy of the tax return clearly shows I paid the correct amount and I kept a copy of the check.  Any suggestions?  Says the penalties will go up if not paid by July 26th.

[VolvoGirl]

Dud they cash your check?  Did you send in the right voucher?  It is a 1040V voucher.  If you sent in one of the 1040ES slips then your check got applied to next year's 2021 return as an estimated payment.  

[Critter-3]

If you already paid the balance due but the unemployment corrections will reduce the taxes owed then when the IRS eventually recalculates the return they will take the payment you already made into consideration.  All you can do is wait for the IRS to send you the refund.

If you did not make a payment since you will now get a refund instead of owing then the IRS most likely send you a balance due letter that you can ignore since you know you will not owe anything in the end.   Calling the number on the notice or mailing back a response would not be inappropriate.  

[fanfare]

IRS expects you to pay by in full by May 17th.

If you are sending a reduced amount based on your own calculations you are taking a chance because you don't now what adjustments the IRS will make.

Meanwhile the IRS computers will continue to spit out dunning notices for the amount you did not pay.

The adjustments  will go on through the summer and probably into the fall.

[lkulwicki]

Yes they cashed my check and yes the voucher was a 1040V.  The voucher from Turbo Tax after the update was applied to the tax software showed the amount I sent.

[lkulwicki]

No, I did not send an amount based on my own calculations.  I sent the amount Turbo Tax printed the voucher for after the update to their tax software was updated.  However, I had filed before that as I always file in February.  I do not get a refund.  My tax liability just was decreased due to the unemployment forgiveness.  The IRS is now saying I owe the tax on what was originally filed before Turbo Tax updated.

[Critter-3]

If you paid then send them proof of payment in response to the notice saying you still owe ... and/or call the number on the notice to resolve this situation.