I filed my 2020 and now my return in TT shows "less" federal tax due + refund now from state. Is this a recalculation due to recent law change to exempt a portion of unemployment income? Should I expect the IRS to send back the difference?
Are you referring to the new tax law (American Rescue Plan Act, aka ARPA) from earlier this Spring with the "up to" $10,200 unemployment income exclusion? If you filed prior to that new law, the IRS has been busy recalculating people's returns to provide any additional refund due. The process will continue through the summer. They worked on the simplest returns first. Unfortunately, no one in a user community forum can tell you anything specific about when you would get yours.
See this latest IRS press release from June 4:
"The IRS plans to issue the next set of refunds in mid-June. The review of returns and processing corrections will continue during the summer as the IRS continues to review the simplest returns and then turns to more complex returns."
"Taxpayers will receive letters from the IRS, generally within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment."
Thanks but my question is about the change in my TT file - appears to now reflect the impact of the law change vs when I actually filed. My return originally showed tax owed (which I filed/paid) and now shows -0- tax due. Same change is reflected in my state return file.
REVIEW the actual tax returns to see how the changes affected the bottom line ... if you do not owe now then when the IRS gets around to recalculating your return they will see the same thing and refund the payment you already made. This may take the rest of the summer to happen so just sit tight.