Unemployment Income Tax Forgivness

[gbarr13464]

My wife is self employed and received $5800 Federal Unemployment Money. We already filed our tax and she owed $840 to the IRS. We authorized the IRS to withdraw from our Credit Union account to pay the tax. The withdrawal date is April 1, 2021. What can I do to stop this automatic withdrawal since the Covid Relief Bill was just signed into law and the Unemployment Tax Forgivness of $10,200 applies to her, thus reducing her Federal Tax Liability considerably? How do we handle this situation?

[DoninGA · Accepted solution]

Go to this IRS website for how to cancel a payment - https://www.irs.gov/payments/pay-taxes-by-electronic-funds-withdrawal

• Once your return is accepted, information pertaining to your payment, such as account information, payment date, or amount, cannot be changed. If changes are needed, the only option is to cancel the payment and choose another payment method.
• Call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling.
• Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date.

[Contented]

I would hesitate to cancel a payment, lest you get a penalty.  It might be best to let them receive the payment and then wait for the reimbursement.