Forgot to report unemployment (1099-G) for 2020; already received my refund weeks ago!

[cjs56484]

Hi all,

I was unemployed and received UI benefits for part of 2020 but also employed during 2020 (lost job; gained a new job). When it was time to file, I already had my W2s, and felt nothing was missing so I filed; and received a refund within weeks.

So lo and behold, I receive an email notification from Turbotax the other day alerting me to the new American Rescue Plan that will give taxes paid on UI back to taxpayers!  Had it not been for that email, I wouldn't have noticed that I inadvertently did NOT include UI compensation when I filed my federal form!  In my defense, I never received a 1099-G paper copy in the mail!  I quickly logged into my WI UI site and downloaded a digital copy of my 1099-G; so I can now amend my return, but not sure how to proceed with the new changes going on at the IRS with regards to the American Rescue Plan.

Also, apparently, the IRS hasn't dropped the new 1040X's; but will soon.  So should I wait until they do, and make an amend to my original return?

Thank you in advance!

[ColeenD3]

Yes. Even though it is excluded, it should still be reported.

[cjs56484]

Thank you, ColeenD3!!!  As soon as it says on my e-filed return that I can file an amended; I will.  When I log in, it still says below: 

Your return isn't ready to be amended yet:

The IRS is making some updates that change how we support amended returns that include unemployment. 

We'll be updating our product after we have IRS guidance on the best way to file amended returns so they can be processed quickly and accurately.

I will just wait until then, but thank you for the heads-up!  I was freaking out, but I feel calmer now.  : )

[cjs56484]

ColeenD3:

Something else just occurred to me:  Should I file an amended return for the State as well? 

Thanks!

[KathrynG3]

Yes, you are correct. When filing an amended federal return, typically, the state return must be amended, as well.

Amending the federal return can be done electronically. However, unless you live in Georgia, Michigan, New York, or Vermont, any state amended return must be paper filed.

For more information, see: Do I need to amend my state if I amend my federal?

[cjs56484]

Thank you KathrynG3!  Will do!