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Do I need to file an amended return for the unemployment tax break? Email from Turbo tax says I do, the website says I do not!

 
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3 Replies

Do I need to file an amended return for the unemployment tax break? Email from Turbo tax says I do, the website says I do not!

You generally do not need to amend for Federal.

 

However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits, but now are eligible because the [unemployment comp] exclusion changed their income.  These taxpayers may want to review their state tax returns as well.

IRS to recalculate taxes on unemployment benefits; refunds to start in May | Internal Revenue Servic...

 

See these re State:

How is my state taxing unemployment income? (intuit.com)

Do I need to amend my state return to update my un... (intuit.com)

Do I need to file an amended return for the unemployment tax break? Email from Turbo tax says I do, the website says I do not!

RayW7
Expert Alumni

Do I need to file an amended return for the unemployment tax break? Email from Turbo tax says I do, the website says I do not!

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-

Unemployment Stimulus: Am I Eligible for the New ...

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