Tax on Unemployment

[dspicer1]

I received unemployment in 2020 and have already paid taxes on it.  I understand that IRS will recalculate my return on refund any over payment.  However, I was originally not eligible for EITC but with the reduction in AGI, now I am eligible.  Info on the IRS website says that in this case, I should file an amended return.  Shoud I: 1) wait for the IRS calculated refund and then later file an amended return to get the EITC, or 2) file an amended return now for both the refund and the credit?

[rjs]

You should wait to file the amended return until after you get the refund that the IRS calculates, and the letter from the IRS explaining the recalculation. There are two reasons to wait.

First, the IRS web site also tells you NOT to file an amended return for the unemployment exclusion.

Second, an amended return contains figures from the original return. But in this case, the "original return" figures have to reflect the IRS recalculation. You have to make sure that those amounts match the changes that the IRS makes. There is a chance that the IRS recalculation could turn out to be different from what you expect, so you should wait until you have the actual IRS amounts.

[dspicer1]

Thanks.  That is what I thought would be the best approach.