Should I file an amended tax return if I filed using the income and tax numbers provided on my 1099-G form provided by Michigan Unemployment UIA?

[russ-malinas]

How do I handle this situation if I already filed my federal and Michigan state returns for 2020? New exclusion from the IRS:
If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200.

[MayaD · Accepted solution]

No, you don't need to amend your return to receive a refund. The IRS will recalculate your taxes, adjust your account accordingly, and send any refund amount directly to you.

[russ-malinas]

Thank you MayaD.  Can you please confirm that even though I filed a paper return, it will be automatically recalculated by the IRS with no action on my part?  I also see that after updating my Turbotax Deluxe software that my Michigan return was modified as well.  Do I have to take any action for my Michigan return that I have already filed?  Your support is much appreciated.

[MaryM428]

At this time, taxpayers who collected unemployment benefits and have already filed their tax year 2020 federal and state income tax returns should not file an amended state or federal return. The Michigan Department of Treasury is waiting for federal guidance to help taxpayers receive any state refund they may be owed in the easiest way possible.

Additional guidance will be coming from the Michigan Department of Treasury soon.

Michigan Treasury