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sjcharron04
New Member

When the IRS recalculates my return due to Unemployment income my payment will turn into a refund. Should I still pay the original amount on 5/17?

I don't want to incur penalties for not paying the amount on the original return "on time" even though once the IRS recalculates to exclude the UI income that payment will be refunded.
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Accepted Solutions
DawnC
Expert Alumni

When the IRS recalculates my return due to Unemployment income my payment will turn into a refund. Should I still pay the original amount on 5/17?

It probably won't be difficult but it will involve much waiting and patience.   If you know that your net tax position will be due a refund, you don't need to make a payment.   Once they fully process the return, your transcript will be updated and they will either issue the refund or send you a notice requesting you to take some action.  

 

You can start an amendment and then cancel it if you want to see how the unemployment exclusion will affect your tax return.   If you do this, make sure you go through the stimulus questions too to ensure you are viewing your correct refund or tax due amount.     

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4 Replies
ThomasM125
Expert Alumni

When the IRS recalculates my return due to Unemployment income my payment will turn into a refund. Should I still pay the original amount on 5/17?

You should not pay in more than what you will owe once the unemployment income is excluded. Otherwise, it may be difficult to get the excess refunded. If you should get a penalty, you can explain what happened and it should be reversed.

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Critter-3
Level 15

When the IRS recalculates my return due to Unemployment income my payment will turn into a refund. Should I still pay the original amount on 5/17?

Agreed ... if the change will get you a refund do NOT pay the current balance due.  

fanfare
Level 15

When the IRS recalculates my return due to Unemployment income my payment will turn into a refund. Should I still pay the original amount on 5/17?

why would it be difficult to get the excess refunded?

What about people how already paid their "amount  you owe"?

are you saying they will have difficulty?

 

Nowhere does IRS say you do not pay the "amount you owe" by May 17th.

DawnC
Expert Alumni

When the IRS recalculates my return due to Unemployment income my payment will turn into a refund. Should I still pay the original amount on 5/17?

It probably won't be difficult but it will involve much waiting and patience.   If you know that your net tax position will be due a refund, you don't need to make a payment.   Once they fully process the return, your transcript will be updated and they will either issue the refund or send you a notice requesting you to take some action.  

 

You can start an amendment and then cancel it if you want to see how the unemployment exclusion will affect your tax return.   If you do this, make sure you go through the stimulus questions too to ensure you are viewing your correct refund or tax due amount.     

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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