Unemployment Tax Relief - Already filed

[kblukehart]

I already filed my 2020 tax return and at the time of filing it said I owed federal taxes due to BOTH unemployment benefits received and for some 1099 contract work I did. The bulk of the taxes I owe is from my unemployment benefits. I haven't paid my federal taxes due yet and my question is, now that the new bill went into affect exempting a portion of unemployment benefits (I received $9k in unemployment), do I pay the full amount due and then wait for the IRS to issue me a refund for the overpayment? Or, how do I go about this? Thank you!

[Irene2805]

You should pay the balance due on  your return.  The IRS will automatically review your return and make an adjustment for the unemployment benefits.  

According to the IRS, they will send payments in two phases:

• Phase 1: The IRS will adjust returns for taxpayers eligible for up to $10,200 exclusion. Payments for phase 1 are expected to start in May.
• Phase 2: The IRS will adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns. No specific timing has been given for phase 2 payments.

Check back to this TurboTax blog for the most current information:  Unemployment Stimulus: Am I Eligible for the New Unemployment Income Relief?