I received a lesser refund from the IRS than TT figured for me (full explanation coming soon) I ran TT again after it applied updates. The same TAX data file now yields a different, higher refund than before. Does the newer version of TT must have revised or corrected tax rules. Any reason I shouldn’t file an amended return?
Sounds like 2 different things. The IRS adjusted your return for something (not unemployment). And now Turbo Tax updated and gives you more refund, probably for the unemployment.
For unemployment. When did you file? If you have filed early before the exclusion, the IRS will recalculate your return for the new 10,200 unemployment exemption for you. 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.
Now for the IRS sending less refund. Federal and state refunds come separately. How much is missing? The IRS will send you a letter why. Were you having the fees deducted from your refund?
A common adjustment is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payment or got the second one after you filed or reported the wrong amounts or entered them in the wrong box. Do you have an amount on line 30?
Does the newer version of TT must have revised or corrected tax rules.
Yes, TurboTax was revised in late March to implement the tax changes made by the American Rescue Plan Act, which was signed on March 11.
Any reason I shouldn’t file an amended return?
Yes, there's a reason. You shouldn't file an amended return because the IRS says you shouldn't, unless the reduction of your AGI resulting from the unemployment exclusion makes you eligible for a credit or deduction that you were not eligible for on your original tax return. In any case, you should wait until you get the letter explaining why your refund was reduced, and until you get the additional refund for the unemployment exclusion. Once the dust settles, you will probably find that no amendment is needed.
TY Volvo girl. I will wait for,the official letter to see wats what. What I don’t get is this..forget what the IRS “did” to my return..When I took the same .tax file into a newly updated (today) Turbo Tax ..
When I took the same .tax file into a newly updated (today) Turbo Tax .
if your original was filed before the update for the UC exemption, the current tax file will now reflect this (see schedule 1 line 😎 resulting in a larger refund than shown on the original return.