Should I remove unemployment when I file an amendment ?

[xmasbaby0]

Why are you amending?  And why do you think you should remove unemployment?  What are you trying to do?

[Mike9241]

NO. and do not amend if the only reason for amending is to report the non-taxable portion of UC. Doing so could actually delay your refund. the IRS says they'll adjust automatically. the only reason to file an amended return, and that would be after the IRS processes the return as filed after correcting for the non-taxable portion of UC is that you the IRS missed something. Perhaps you didn't report something because your income was too high to qualify but now it isn't.   

[DavidD66]

According to the IRS

For taxpayers who already have filed and figured their 2020 tax based on the full amount of unemployment compensation, the IRS will determine the correct taxable amount of unemployment compensation. Any resulting overpayment of tax will be either refunded or applied to other taxes owed.

The agency will do these recalculations in two phases.

• First, taxpayers who are eligible to exclude up to $10,200.
   
• Second, those married filing jointly who are eligible to exclude up to $20,400, and others with more complex returns.

Taxpayers only need to file an amended return if the recalculations make them newly eligible for additional federal tax credits or deductions not already included on their original tax return.

For example, the IRS can adjust returns for taxpayers who claimed the earned income tax credit and, because the exclusion changed their income level, may now be eligible for an increase in the EITC amount.

However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits but are now eligible to claim them following the change in the tax law. Taxpayers can use the EITC Assistant to see if they qualify for this credit based upon their new taxable income amount. If they now qualify, they should consider filing an amended return to claim this money.

If you do need to amend, TurboTax is up-to-date with the latest federal changes, and will properly calculate your tax based on the excluded unemployment - do not remove it.

[cecemyers24]

I received an email from turbo tax to do an amendment since the new unemployment tax 

[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.