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I received a TurboTax email saying"...you will need to file an amended federal tax return." But on web it says "Most taxpayers should not amend for the unemployment tax"

Forum|Forum|5 years ago
April 29, 2021
7 replies
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TurboTax, you're telling me to amend my tax return and then telling me to not do anything. I want to know if I should amend for the unemployment tax break or not. Clear and simple.

TurboTax Deluxe Online

Best answer by linaj20201

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."

@cindypetsitter

RayW7

Level 12

If this is related to the unemployment exclusion then you should wait until the IRS has updated your return before filing an amended return. It's possible that you may only need to amend the state return.

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-

I need to amend my state return - TurboTax

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

C

cindypetsitter

Level 2

Then why did Turbo Tax email us telling us that we needed to amend our returns to get our refund for unemployment taxes already paid? Seems like Turbo Tax wants us to amend our returns or this is a misleading email. Why not send and email saying to wait until the IRS sends your refund, then see if a person needs to amend their taxes? Very confusing email which goes against what was already presented.

L

linaj20201Answer

Level 14

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."

@cindypetsitter

K

Kdhenry07

Level 2

@Ashbg80 I amended my taxes due to the email as well, now I’m hearing about friends who received direct deposits for the unemployment refund who did not amend returns. Definitely feel like they should have gone over that email and cleared it up for everyone!

T

Terri297

Level 2

Add to that, the Child Tax credit is also on hold as a result. Sickening.

M

Midirid

Level 2

I also amended mine because the email said I needed to. I had a friend who got her money direct deposited today but I haven't got anything. Also the irs website is saying I'm pending for the advance child credit that I definitely qualify for and I'm wondering if it's because of the amended return. Now I'm thinking I shouldn't have done it

A

Ashbg80

Level 2

I also did not receive my child tax credit. This is bull**bleep**. I will never use TurboTax again.

Critter-3

Level 15

The email that was sent did NOT say you MUST amend ... however it use the word "may" need to amend "if" certain things applied. If you choose to amend when it was not required then there is nothing you can do but wait for the IRS to process the return. TT cannot help or speed things up for you.

And for the advance of the CTC that just started being sent out if you don't get all you are entitiled to in advance then you will get it on the 2021 tax return. https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

M

Milbumfam

Level 2

I also filed an amended return because turbo tax said to and now my eligibility for the ctc says eligibility pending and I didn’t receive the advance payment and I have not received my unemployment tax refund either. Thank TurboTax for completely screwing me over! Will NEVER use TurboTax again.

J

jmansf

Level 3

I also received this email and have yet to receive the unemployment tax refund or my child tax credit. I NEVER had a problem in the past with getting my refunds early via direct deposit and now I see that I have to wait for a check to be mailed. WE REALLY NEEDED THESE CHILD TAX PAYMENTS. I sure hope that I don't have to wait until we file out taxes to get any payment. I am so sad about all this because I ONLY amended my returns after I got the email from turbo tax directing me to do so. This is really horrible.

F

Faith77

Level 2

Mine absolutely said I needed to file an amendment not I may have to file an amended return

Critter-3

Level 15

The IRS is seriously behind in processing 2020 tax returns. This is due to many factors, such as the pandemic, completing processing of millions of 2019 tax returns, stimulus payments, unemployment compensation exclusion tax refunds., changes in the tax code by Congress in the middle of the 2020 tax season and the like.

Millions of taxpayers have not yet received there federal tax refunds.

Go to this IRS website for operational status - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

As of June 23, 2021, we had 17.5 million unprocessed individual returns in the pipeline. Unprocessed returns include tax year 2020 returns such as those requiring correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). This work does not require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund. If, as a result, a correction is made to any RRC, EITC or ACTC claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Where’s My Refund? for their personalized refund status and can review Tax Season Refund Frequently Asked Questions.

M

Milbumfam

Level 2

The issue has zero to do with the irs delay of processing returns

G

grey4

Level 2

I amended my tax return because of the email that I received. Then I looked online and saw a lot of articles saying not to do anything. With me amending my 2020 tax return, I have not received my refund, unemployment tax credit, or child tax credit. The Information I received through Turbo Tax was very misleading and has caused a huge financial delay for my family. This has been the most frustrating tax experience ever! Turbo Tax has received my money for filing taxes, but because of misguided Information I have not received what I and my family was supposed to!!

J

jmansf

Level 3

right there with ya... this really sucks

Critter-3

Level 15

This is incorrect. I HAVE the email. It says "will" not "may"

I got my return back already. I filed back in feb. In May I hot an email from turbotax saying i will need to amend. So i did that. I find out days later I didn't need too. This is 100% a mistake on Turbotax's part and it would be great if they would at least acknowledge it. My family is obviously not the only one hurt by them sending us an email with false info that has our money backed up for months. I don't know how you think you're helping by telling me what you think my email says. Here is what it states exactly

"

IMPORTANT NOTICE: Your 2020 Tax Return

Getting too much email? Unsubscribe

TurboTax

To:

[email address removed]

Wed 4/28/2021 1:35 PM

Dear TurboTax Customer,

We are following up on our earlier email regarding the increased Unemployment benefits. Great news! In addition to the unemployment benefits, you may now be eligible for additional deductions, credits or benefits on your 2020 TurboTax federal and state returns.

Unemployment Income: Based on the recently passed American Rescue Plan, the first $10,200 of your unemployment income may now be tax-free. Since you filed before this law was in place, you could be owed an additional payment from the IRS.

Additional Deductions and Credits: Now that some of your unemployment income is tax free, your Adjusted Gross Income (AGI) may be lower. This means that you could now be eligible for additional deductions and credits.

In order to claim any additional deductions and credits you are now eligible for, you will need to file an amended federal AND state tax return.

Amending is easy, and our experts are here to help. Simply log in to your account and select "Amend using TurboTax Online," and we'll guide you through it. In the unlikely event that these additional credits or deductions result in a product upgrade with additional fees, just continue with the amend process. You will reach a screen with instructions on how to contact an expert who will remove the fees. Everyone will be able to file their amended returns to gain these benefits at no additional cost.

Thank you again for being a TurboTax customer.

Sincerely,

TurboTax Care Team"