topic Due to unemployment I filed and paid too much federal tax, now what do I do? in Get your taxes done using TurboTax

Due to unemployment I filed and paid too much federal tax, now what do I do?

comingsoonnews — Sun, 21 Mar 2021 19:40:59 GMT

Re: Due to unemployment I filed and paid too much federal tax, now what do I do?

LenaH — Sun, 21 Mar 2021 19:51:42 GMT

It depends. Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment.

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for a person with an annual modified adjusted gross income of less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.

If you would like to receive progress status updates, please sign up here.

Re: Due to unemployment I filed and paid too much federal tax, now what do I do?

comingsoonnews — Wed, 24 Mar 2021 16:19:50 GMT

The IRS says they HAVE given Turbo Tax, H & R Block etc guidance............. would like to really know since there is a 600+ difference in what I paid and Turbo says I now owe...........I paid 639.00 more than what it now states I owe............

Thank you

Re: Due to unemployment I filed and paid too much federal tax, now what do I do?

ToddL99 — Wed, 24 Mar 2021 16:29:00 GMT

If you have already filed the IRS will fix this for you - you do not have to do anything.

If you already filed and did not claim the exemption for unemployment compensation, the IRS will refigure your taxes for you and send any refund that is due.

From the IRS: New Exclusion of up to $10,200 of Unemployment Compensation:

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.