Unemployment exemption

Forum|Forum|5 years ago
March 24, 2021
3 replies
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I filed my return with substantial unemployment income but haven’t paid yet. The recently passed exemption takes me from owing taxes to getting a refund. The IRS says not to file amended return and I’m not finding anything in turbo tax about my situation.

Best answer by rjs

UPDATE: THIS HAS CHANGED. SEE MARCH 24 REPLY BELOW.

The IRS posted the following on their web site this morning (Tuesday, March 23).

"If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you."

At this link, it's the paragraph after the bulleted list:
New Exclusion of up to $10,200 of Unemployment Compensation

rjs

Answer

Level 15

UPDATE: THIS HAS CHANGED. SEE MARCH 24 REPLY BELOW.

The IRS posted the following on their web site this morning (Tuesday, March 23).

At this link, it's the paragraph after the bulleted list:
New Exclusion of up to $10,200 of Unemployment Compensation

fanfare

Level 15

if you already filed you must pay the amount shown on your original tax return.

rjs

Level 15

The IRS has changed their web page. Now (March 24) it says the following.

"If you have already filed your 2020 Form 1040 or 1040-SR, you should not file an amended return at this time. The IRS will issue additional guidance as soon as possible."

johnkfarrAuthor

Level 2

So I guess that supersedes yesterday’s update saying they would take care of it! 😜

Level 3

RE: To folks that have already filed using TT on-line and are affected by the unemployment tax changes.

Now if you log-in, go to tools and view/print your return, you will find the new updated return for your records. The first page summary is wrong in that they didn't reconcile the refund received to what is owed, but the actual return looks perfect.

I tried to find anywhere TT or any expert has mentioned this but I couldn't find it. Forgive me if this is repetitive information.

This information further reinforces that the IRS will also be able to make these changes and we will not need to send in amended returns. Refunds will magically show up in our bank accounts. (I'll bet it takes less than 30 days).

Stacey2476

Level 2

My return doesn't show the updated return its still showing the old one !

AmyC

Level 15

@Stacey2476 Normally the program does update your return with the changes. If you have a piece of data stuck, it will not. It is nothing for you to worry about. It does not affect the IRS processing your change.

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