Unemployment Exemption Re-calculated by TurboTax?

[ChrisGA]

I recently received an e-mail from TT that stated the IRS will be recalculating 2020 returns and issuing refunds in two stages in May. After receiving this e-mail I logged into my TT account and noticed that when I navigate to "tax tools/tools" and I choose "view tax summary", the totals listed are completely different than what is listed on my 2020 return. My AGI is listed as though the Unemployment income was deducted and my federal refund amount is listed as more than double than what I actually got back after filing with TT back in Feb.

Is this a bug, or do the differing amounts indicate that I will receive the difference between the two?

[ee-ea · Accepted solution]

You will be getting the difference.

[VolvoGirl]

If you already filed and didn't get the 10,200 unemployment exclusion you do not need to amend.  The IRS will be adjusting it for you.  See,

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

You can log back into your return and it should automatically update your return and show you the new refund.  But the updated return won't be sent.  The IRS will adjust it for you.

If you have unemployment you can exclude up to 10,200 for each person if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.