The article also states that"Workers can exclude [UI] aid when calculating their modified adjusted gross income." Does this mean exclude the entire amount of UI income received or just up to the $10.2k deduction limit? If it's the latter, does the deduction extend to 20.4k for Married Filing Jointly? You must wait for the IRS to recalculate your return before you do anything else. The UI exclusion is up to 10.2 per person not per return. So if one spouse only had $5K and the other $15K the max amount to be excluded is 5000 + 10200 for a total of 15200.
If new AGI is less than $150k following the UI deduction, will affected filers also now qualify for the stimulus payments and child tax credits that are precluded for those making over that amount? Again you must wait and only amend after the IRS processes the return. You only amend if you are adding something new to the return that was not on the original due to income limitations. The IRS will recompute the entire return but they will not add a form that was not on the return to start with.
Finally, what is the proper guidance for those of us affected by this? To amend or not to amend? WAIT for the original return to be fully processed and the original/corrected refund has been received or you get a revised bill for a balance due. Until you know what the IRS changed you do not know what to put on column A of the 1040X.
