Why is TurboTax telling me to file an amended return to claim the unemployment tax credit while the irs is telling me not too?

[SweetieJean]

You generally do not need to amend for Federal.

However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits, but now are eligible because the [unemployment comp] exclusion changed their income.  These taxpayers may want to review their state tax returns as well.

IRS to recalculate taxes on unemployment benefits; refunds to start in May | Internal Revenue Servic...

But see these re State:

How is my state taxing unemployment income? (intuit.com)

Do I need to amend my state return to update my un... (intuit.com)

[RayW7]

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 ...

[ColeenD3]

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.

From fanfare:

The turbotax email/letter was misleading.

You can wait because IRS is going to adjust your refund for you , in the future.

[Critter-3]

The email should say "MAY need to amend IF ..."  but it was poorly written and not proof read by the correct experts before it went out.  

[jalaniz00123]

So I should not file an amended return for this? What if I do? 

[nicolaismom]

I filed a amendment because I thought I was supposed to after getting the alert now what!

[Mark Hall]

But gentlemen my ask is When?  I filed on February 12.  I actually did not receive a refund.  I had a pay out to the IRS.  But now I would like the $$ back from the taxes I paid for unemployment.

I have not heard from the IRS pertaining to anything on my refund for unemployment taxes I paid.  I find it hard to stand and do nothing with my fingers crossed that the IRS is on this.  

Does anyone know of a date that this is all supposed to take place?

Thanks

[xmasbaby0]

@Mark Hall

The IRS began to send out the additional refund checks for tax withheld from unemployment in May.   If you are eligible for the extra refund for federal tax that was withheld from your unemployment the IRS will be sending you an additional refund sometime during the next several months.  TurboTax cannot track or predict when it will be sent.  The IRS has not provided a way for you to track it, so all you can do is wait for the refund to arrive.

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...

Please read this very recent news from the IRS:

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

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

https://ttlc.intuit.com/community/tax-credits-and-deductions/help/am-i-eligible-for-a-new-credit-or-...

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...

[tbart]

Is Turbo Tax charging to file these amended returns if the taxpayer already paid them to file the original return?

[Critter-3]

Amending is free as long as you don't need to upgrade to do it.  For instance if you used the FREE version but need to add a Sch C you will be required to upgrade to the SE version which you would have had to use for the original return. 

[xmasbaby0]

@tbart There is no fee to amend your tax return unless you need to upgrade to a higher version of the software for the change you are making.

[TafAjf03]

How can I tell if the taxes withheld from my unemployment during 2020 (pandemic) Were issued on my federal tax return?  We used turbo tax. 

[VolvoGirl]

For 2020 the federal income taxes withheld from the Form 1099-G will be included on the federal tax return, Form 1040 Line 25b.

[TafAjf03]

I see that. But, does that mean that amwas refunded?