Filled federal income taxes before covid relief plan allowing first 10 grand not to be taxed. I owed $600 and with update i show $800 coming back what do i do?

Rhollenbeck02 — Wed, 31 Mar 2021 23:29:05 GMT

Re: Filled federal income taxes before covid relief plan allowing first 10 grand not to be taxed....

ErnieS0 — Wed, 31 Mar 2021 23:41:22 GMT

The IRS is issuing automatic refunds beginning in May. Most people will not have to do anything.

The IRS will recalculate in two phases, starting with taxpayers eligible for the $10,200 exclusion. Next comes married filing jointly taxpayers who are eligible for the up to a $20,400 exclusion and others with more complex returns.

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.

Check your state refund. If that box has changed, you may be entitled to money back from your state.

Related Resource:

IRS to recalculate taxes on unemployment benefits; refunds to start in May

Re: Filled federal income taxes before covid relief plan allowing first 10 grand not to be taxed....

fanfare — Thu, 01 Apr 2021 01:12:11 GMT

IRS will process your return as originally filed.

You must pay the amount owed as shown on your tax return.

@ErnieS0

Give one good reason this is not so.

topic Filled federal income taxes before covid relief plan allowing first 10 grand not to be taxed. I owed $600 and with update i show $800 coming back what do i do? in Get your taxes done using TurboTax

Filled federal income taxes before covid relief plan allowing first 10 grand not to be taxed. I owed $600 and with update i show $800 coming back what do i do?

Re: Filled federal income taxes before covid relief plan allowing first 10 grand not to be taxed....

Re: Filled federal income taxes before covid relief plan allowing first 10 grand not to be taxed....