federal - There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
For example, the IRS can adjust returns for those taxpayers who claimed the Earned Income Tax Credit (EITC) and, because the exclusion changed the income level, may now be eligible for an increase in the EITC amount which may result in a larger refund. 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 exclusion changed their income.
These taxpayers may want to review their state tax returns as well.
califonia
As a result of the federal $10,200 exemption for unemployment compensation received in 2020, people who filed a 2020 California tax return before March 11, claimed the California earned income tax credit (CalEITC), and reported unemployment income don’t need to do anything to correct their California return. The state will make any necessary changes and send any resulting state tax refund beginning in August 2021. In addition, no action is required if you file your 2020 California tax return after March 11, claim the CalEITC, and report unemployment income.
If you filed a 2020 California tax return, did not claim the CalEITC, reported unemployment income, and reported a federal AGI of less than $40,201 (single) or $50,401 (married filing jointly), then see if you qualify for CalEITC. If you do, mail in Form FTB 3514. You do not need to amend your California tax return.
