Tax rules updated after we filed?

[SHJ723]

I E-filed my taxes through Turbo Tax in early February.  Now I have a few issues:

At that time, we were getting a federal refund of just under $1900 and owed the state of Ohio around $400.  We’ve already received the refund and I set the state to charge my bank for an e-check payment on April 15th.

Today, I wanted to verify the amount we owe the state.

When I opened Turbo Tax to look at the return, I made the mistake of clicking “yes” when it asked me to update the program.  Turbo Tax made updates to both the overall program and the Ohio return.

Now, the return in the program shows that we are owed a Federal refund of over $3100  and only owe Ohio $47.

First, is likely that the tax rules changed that much since February or is the program glitched?

Second, what do I do about this and how would I do it through the Turbo Tax program?

I'm assuming it's just a matter of an amended return to the Feds to ask for an additional refund, but do I have to overpay the state and then file an amended return or can I fix it beforehand?

[JotikaT2 · Accepted solution]

It depends.  It is actually a bit of both.  There have been several tax changes that have occurred since February that could be affecting your return.

If you had unemployment income, the American Rescue Plan essentially made the first $10,200 of unemployment income nontaxable.  This could have affected your return.  If so, you do not need to do anything.  The IRS is planning to issue refunds for any taxes impacted by the change.

Unemployment claimed on returns already filed

Please refer to the link below for additional updates if your return is affected by the latest IRS changes in unemployment income.

Unemployment income relief updates

As for your state return, I recommend printing your tax return as already filed and comparing it to what is currently reflected in TurboTax.  This may help you determine why your state return changed.  Please comment once you determine why the state return has changed and we can guide you accordingly based upon your specific state and the changes.

Instructions to download tax returns

Please see the following link for any additional items that could have had an impact on your tax return.

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