Do I need to bring up that today is 3/26/2021? What is the current 1040X status?
I need to amend to account for a traditional IRA contribution, which will get our AGI below the cutoff for the Recovery Act distribution and for taking advantage of the excluded unemployment amounts. TurboTax seems to have already recalculated my return, but their calculation, I believe, is wrong. According to the IRS, one cannot take advantage of the unemployment exclusion unless ones pre-exclusion AGI is less than 150,000 (married filing jointly). (https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation) My interpretation is that if our AGI is 150,001 and 10,000 of that AGI is from unemployment, then one does not get to exclude the 10,000; however, if our AGI was 149,999, then our taxable income becomes 139,999 because we CAN exclude the $10,000 earned from unemployment. So, it benefits us to add $2.00 to a traditional IRA so that we can get $10,002 off our taxable income plus the full $2800 amount of the Recovery Act funds rather than the graduated amount. Is my interpretation correct?
Is the IRS going to extend the 2020 tax year contribution deadline for IRAs past April 15, 2021?
