How do I amend 2020 federal which has been accepted

[PayPerPeddler]

Yes, but your MAGI (Modified, because of the changes) has to be below $150,000 for all of this to matter.  The phasing out only applies to people who's AGI or MAGI is under $150,000.  That's what my understanding is.

[PayPerPeddler]

Sorry, I neglected to answer your question.  We already filed, that is why I am using the abbreviation MAGI instead of AGI.  If I let the IRS make the calculations for me, my MAGI (after they figure out if I am under the $150K threshold) will come out to be $150,013, so they will deny me.  However, if I amend and add $100 to an IRA (assuming we meet the requirements being able to deduct the extra $100), then the MAGI will turn out to be $149,013.   

[Anonymous]

The amount of EIP goes by AGI only.  Modified AGI doesn't even play into the equation.

If your AGI is $150K or under, you get the full amount. If your AGI is $13 over $150K, it would lower it by a couple of dollars.  You get a reduced payment up to $160K. Anything over that you aren't eligible.  Those are numbers for joint filers.

[Anonymous]

Just saw your other reply. No, $150,013 would not disqualify you.  Put your numbers in the calulator I posted. 

Also, check to see if your payment is scheduled.

https://www.irs.gov/coronavirus/get-my-payment

[PayPerPeddler]

Yes, but to get the unemployment exclusion, your AGI and/or MAGI has to be below $150,000.

[Anonymous]

That may be true. I was only talking about the EIP-3 payments

[steinjd]

macuser_22,

Thank you for the explanation.  However, I know how to figure out the contribution deduction for a traditional IRA.  My issue was regarding how the unemployment tax waiver kicked in not the traditional IRA.  My wife received unemployment income that put our AGI over the $150,000 threshold and I need to amend our return to account for her traditional IRA contribution we just made so our AGI is reduced.  Our currently filed return that has been accepted by the IRS indicates an AGI over $150,000 because the IRA contribution was not accounted for at the time of filing.  

I am happy to know that the contribution deadline has also been extended with the tax deadline.  Thank you for confirming.

Best

[steinjd]

Thanks @LinaJ2020,

When I follow your instructions, TurboTax online is still telling me:

"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 believe the IRS has got it figured out and all I need is for TurboTax to figure it out.  I am expecting an extra $4000 back from the Fed after amending and it would be nice to have an option to get the amendment process rolling. 

Best

[DoninGA]

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@steinjd wrote:

Thanks @LinaJ2020,

When I follow your instructions, TurboTax online is still telling me:

"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 believe the IRS has got it figured out and all I need is for TurboTax to figure it out.  I am expecting an extra $4000 back from the Fed after amending and it would be nice to have an option to get the amendment process rolling. 

Best

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The IRS will be handling the unemployment exclusion for those who filed before the exclusion was available.

Go to this IRS website for information - https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[DawnC]

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments is now tax-free for a person with an annual modified adjusted gross income of less than $150,000.  This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020. The IRS will provide additional guidance about what you need to do to take advantage of this relief if you already filed your 2020 tax return.  

If you’d like to be updated when the information becomes available, please sign up here.   Per the IRS:  There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

IRS to recalculate taxes on unemployment benefits; refunds to start in May.

[Derek415]

Any updates when someone with unemployment income could amend to add a missing W-2?

[PayPerPeddler]

Thank you.  So if I want to make any changes (add an IRA contribution) to get me under the $150,000 threshold so my unemployment exclusion is in effect, I will be able to amend soon when TurboTax gets their software entact?

[gloriah5200]

Once IRS has completed processing your income tax return filed, you can go back in and reopen your return to do an amended return to add the W-2.  

When you do, then the software should also qualify you for the unemployment exemption if you qualify, so that and any other benefits that you now qualify for due to a different agi should also open back up for you.

[PayPerPeddler]

OK.  My tax return has been accepted, filed and I already received a refund in early March.  However, It is not letting me amend right now though. 

It is saying:

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. Learn more

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.

[PayPerPeddler]

Do you think there could be a glitch in TurboTax that is blocking me from amending because I have unemployment compensation involved in my return?  Maybe TurboTax is not letting me because the IRS said that they will do the calculations themselves?