Will TT amend and refile my federal return?

[tominer]

I filed my federal return in early March. Got $7700 refund. The new legislation was passed, TT updated the software. Now TT calculates a $9200 refund. Do I need to amend my original return for TT to eFile? Now TT says my return has already been filed?

[DanaB27 · Accepted solution]

If you had unemployment benefits on your return then if your modified adjusted gross income (AGI) is less than $150,000, then you can exclude up to $10,200 of unemployment compensation paid in 2020 from your taxable income. Amounts over $10,200 for each individual are still taxable.

If this is the case and you did not have any other changes on your return, then you do not have to file an amended return.

"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." (IRS)

If you did not have unemployment then you will have to file an amended return to claim the additional refund. Please review everything carefully. You can e-file your 2020 amended federal tax return, but most states require amendments to be printed and filed by mail. Please see FAQ How to amend a tax return for instructions.

[tominer]

Thank you.  Indeed the change in the tax calculation is due to my wife's unemployment.

Per your response, I do NOT need to file an amended return as the IRS will perform the calculation and send me the increased amount of my refund.

Thank you.

Tom M

[HelenC12]

Yes, that is correct. If you filed a tax return, 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.

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.