Because of the change in taxing unemployment, I would now be able to claim deductions that I was not able to claim previously. Do I have to pay to redo my taxes?

Mortgage interest, donations, etc. were not allowed previously.

After you file

The bill makes the first $10,200 of federal unemployment income ($20,400 for married filing jointly) tax-free for households with income less than $150,000. The legislation excludes only 2020 federal unemployment benefits from taxes, not unemployment income received in 2021.

  • If you have not filed your 2020 tax return, yet, TurboTax is up to date with the new law and will guide you on how to claim these additional unemployment benefits on your tax return. 
  • 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.

When will I get my additional unemployment refund from the IRS?

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.

-follow this link for additional information-

Unemployment Stimulus: Am I Eligible for the New ...

 

 

To amend a return 

Some quick ground rules:

  1. Be sure the original return was filed and accepted.
  2. DO NOT go back into the return or change anything before you start the amendment process.
  3. Gather everything you need before you start.
  4. Complete the entire amendment process before you log out.
  5. Starting with 2020 tax returns you can E-File a 1040-X amended tax return.  All prior years must be printed and mailed.

 You can correct a return that you've already filed and had accepted.  Select the year that applies and use this guide to proceed.

Select your tax year for amending instructions:

For additional information please refer to  How to Amend

                           

 

After you file

@alison-fleeup 

Unemployment compensation has nothing to do with those deductions.

In any case, if you failed to take them for whatever reason, file an amended tax return for that.

 

Wait until you know what the IRS did to your tax return because of unemployment.