You generally do not need to amend for Federal.
However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits, but now are eligible because the [unemployment comp] exclusion changed their income. These taxpayers may want to review their state tax returns as well.
But see these re State:
If this is related to the unemployment exclusion then you should wait until the IRS has updated your return before filing an amended return. It's possible that you may only need to amend the state return.
The IRS has asked that taxpayers not amend for the unemployment exclusion, unless the unemployment tax break makes them newly eligible for tax benefits like the earned income tax credit.
- If you already filed your 2020 tax return, you do not need to do anything to get these additional unemployment benefits. The IRS announced that they will automatically adjust your return and send any additional refund amount directly to you. However, some people may now be newly eligible for additional deductions and credits not already included on the original tax return. In these cases, you will likely want to amend your return to claim these additional dollars. Additional information on this is below.
-follow this link for additional information-
If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.
The turbotax email/letter was misleading.
You can wait because IRS is going to adjust your refund for you , in the future.
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