I waited until the change was made regarding the $10,200 reduction for unemployment in the 2020 Version of TurboTax to file my son's taxes and filed them paying the amount calculated by TurboTax. Yesterday, he received a bill from the IRS, basically ignoring the $10,200 reduction. We have called the IRS, but after going through the maze, we are told they are unable to take calls due to high volume. No luck on the IRS.gov site, either, as no options are given to question changes. Has anyone else had this issue? TurboTax calculated taxes due.
To be clear----are you saying that you waited until the software had been updated for the tax law change for unemployment and prepared the return AFTER the software was updated? What do you see on lines 7 and 8 of Schedule 1 of the Form 1040? Did you pay the tax due that was shown on line 35 of that Form 1040? Do you have a cancelled check or bank/credit card statements that show that payment was made?
I completed his taxes with TurboTax, but was waiting until April 15th to pay. When the announcement came out about the change, I filed a 1040X with TurboTax and mailed a check for the updated amount. It is the only payment made. I did pay by check, and do have electronic access to the "canceled check." It appears that they calculated the tax without taking the $10,200 deduction into account. Since I can't reach anyone at the IRS by phone or electronically, is the only option paying the amount and keeping our fingers crossed that they eventually refund it? Should we file another 1040X? Thanks so much for your help!
No do not file another 1040X. You filed the return before the law changed so the computer churned out a notice based on the original tax due amount. They have not recalculated his tax due amount yet even though you sent an amended return---it takes them about six months to process an amended return.
Eventually---sometime during the summer--- the IRS will recalculate the amounts of tax due or refunds for people whose returns were filed before the law changed----but it may take a few more months.
Call the number on the notice you received from the IRS----it will probably be hard to get through---but be tenacious.