Refund changed

[tommyd47]

I filed my federal tax return on March 30, 2021 and to date I haven't received it. Today, April 29, I opened TurboTax and it did it's usual update and I found that my refund went up $1670 from when I filed. Do I have to submit an amendment to the IRS?

[Rshill]

Hello.  I am also confused about the changes.  I had read the IRS was supposed to automatically adjust your return to reflect the American Rescue Plan changes.  Here is a link with reference:

https://blog.turbotax.intuit.com/tax-news/am-i-eligible-for-the-new-unemployment-income-relief-49427...

• 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.

But I just got my 2020 refund and the changes were not updated. 

Furthermore, I am scratching my head because when I go into TurboTax, it don't notify me I need to amend my return.  It just shows me a larger refund amount without identifying any changes.  I had to go back and look at my original submitted return to see the difference.  I originally thought they underpaid me.    

So I guess we'll have to file an amended return despite the guidance.

Good luck.

Side note.  We (family of four) never got our original stimulus and only got a partial second payment.  I had to claim them on our 02020 taxes.   I am still waiting on the third payment.  

[VolvoGirl]

If you already filed and didn't get the 10,200 unemployment exclusion you do not need to amend.  The IRS will be adjusting it for you.  See,

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

You can log back into your return and it should automatically update your return and show you the new refund.  But the updated return won't be sent.  The IRS will adjust it for you.

If you have unemployment you can exclude up to 10,200 for each person if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

[Rshill]

Thanks.  I saw that link and expected the IRS to provide the correct amount when they deposited my return refund into my bank account.  It took them a day to approve my return but 1.5 months to deposit the refund.   

Why would they process my return and not deposit the correct amount into my back account?

[Rshill]

Quick note in case it is helpful for anyone following this post.  I just submitted my amended return.  TT automatically recognized the $10,200 change.  I just noted the omission in the comment section when prompted and followed the "next" prompts and the whole process was pretty painless.  

Added note...I was able to file it electronically.

[LinaJ2020]

No, you do not need to amend. The IRS will re-calculate your taxes and send you the refund. 

The email refers to, other than the unemployment exclusion, if you qualify for any additional credits and deductions due to a lower AGI, you should amend your federal tax return.  If the only reason you amend is the unemployment exclusion, you do not need to amend. 

 For details from the IRS, click here:  No amendment

Per 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."

[Rshill]

Thanks.  They did NOT recalculate my taxes.  My amended return was accepted in less than an hour.

[VolvoGirl]

@Rshill   Did you read that whole IRS article?  They will be adjusting filed returns later and send you the difference.  Don't know how amending will figure into it now.  

[Rshill]

No.  I didn't read the whole article.  If I wasn't so frustrated at the whole process, I might have had a bit more patience to finish it.  Your point is taken for others.  Thanks.