I filed my return (including unemployment compensation) before the CARES act and its 10,200 UC exemption. I received the refund claimed in that return and also the additional refund due to the UC exemption and also an increased ACA premium tax credit. Both were the expected amounts.
The UC exemption lowered my AGI so that I now qualify for the retirement savings contribution credit based on a contribution to a Roth IRA. Since this was a Roth IRA contribution, it was not reported anywhere on the original return (like a Traditional IRA would have been on Sch 1 line 19). This additional credit was not detected by the IRS since I didn't qualify for it on the original return (AGI above the threshold, now it's below). So, I think I need to file an amended return to claim this. When I open my return in TT, it thinks that I've already claimed this so there's nothing to amend.
How do I get TT to start with the original return + the IRS adjustments (UCE & PTC) but NOT the RSCC so I can add the RSCC as an adjustment?
Start the amend process and enter the Roth contribution.
Enter IRA contributions here:
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.
A Roth IRA contribution does not actually go on a tax return, but you should enter it anyway to:
1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.
You should *wait* until your return has been processed and you receive your refund or conformation that any tax due has been paid. (If you file an amended return while you first return is being processed it can cause extended delays for both returns if two returns are in the system at the same time). In addition, if the IRS makes any change on your original return, you might end up having to amend the amendment – a sticky process that can take a year or more).
-- Then you can start the amend process.
It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it. That is the only proof of mailing that the IRS will accept.
-- Amended returns can be mailed or e-filed - allow 8-12 weeks - can take up to 16 weeks (4 months) for processing. *Currently they are taking 8 months or longer due to the IRS backup*.
See this TurboTax FAQ for help with amending:
You can check the status of your amended return here but allow 3 weeks after filing for it to show up:
Thanks, but that wasn't my problem. But I found a solution & perhaps it might help others in a similar situation.
I entered the Roth IRA contribution as part of the initial submittal, even though this didn't affect the tax. I also entered the total unemployment compensation. At the time of submittal, this was all taxable. I received my initial refund based on that report.
Then congress passed the UC exemption and IRS recomputed the tax and sent an add'l refund for the tax paid on the UC Exemption amount and also adjusted the ACA premium tax credit, since AGI was now lower.
This, however, also made me eligible for a new credit, Retirement Savings Contribution Credit (RSCC) since AGI was now below threshold.
Problem was how to complete the amended return to claim this new credit.
The solution (for me) was to:
1. Open the return in TT and find where the UC exemption was calculated. Find the 10,200 and trace it back thru the forms to where the value was entered by TT and OVERRIDE this to force it to 0. Also, REMOVE the IRA contribution. This gave me back my original return.
2. "File" this return by printing. (Don't actually file or print anything. Just tell TT that you did.) Then save it.
3. Amend this return to put the 10,200 back it. This should give you the return reflecting the IRS adjustments.
4. "File" this as in Step 2. Again, don't actually file or print anything. Save it again.
5. Amend this return & put the IRA contribution back in. This triggers the RSCC credit. This should give you a new amended return with just the RSCC.
6. Actually file this amended return electronically & wait for the check to arrive.
This worked for me & gave me all the correct values everywhere.