topic Looking for more clarification regarding corrected returns due to the American Rescue Plan. P in Get your taxes done using TurboTax

Looking for more clarification regarding corrected returns due to the American Rescue Plan. P

boncough — Wed, 31 Mar 2021 22:34:58 GMT

I'm someone who e-filed their federal and state returns before the American Rescue Plan was issued. If I have already received a recalculated return on my Turbo Tax site from the IRS (I presume) reflecting the American Rescue Plan Unemployment Benefit...do I need to resubmit that or can I assume it is in their hands? Also.....will the state's (Michigan) return also be recalculated by their state agency or do I have to amend that return and resubmit using the figures that have been recalculated on the federal return and if so...will I have to pay another $25 to submit that return again? Help!

Re: Looking for more clarification regarding corrected returns due to the American Rescue Plan. P

Opus 17 — Wed, 31 Mar 2021 22:42:31 GMT

It seems unlikely that you received an adjustment from the IRS since they only made the official announcement today that they would be re-processing UEC tax returns starting in May. Although it's certainly possible they did some secret tests to make sure it worked before making the announcement. If the IRS adjusts your refund, they should also send a letter, did it arrive yet?

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-may

It appears that Michigan is a "conforming" state, that means that they accept the IRS definition of "income", so the federal exclusion for UEC will also reduce your state taxable income. However, this seems to ask you to wait until the state can analyze the IRS decision.

https://www.micpa.org/stay-informed/news/2021/03/24/breaking-news-michigan-department-of-treasury-provides-update-on-unemployment-compensation

If you need to file a Michigan amended return, that would mean preparing both a federal and state amended return in Turbotax (because that's how the program workflow works) but only filing the state return (because the IRS will make the adjustment for you.). But I think I would wait a few more weeks to see if the state makes any different announcement.

Re: Looking for more clarification regarding corrected returns due to the American Rescue Plan. P

MayaD — Wed, 31 Mar 2021 22:44:11 GMT

You don't need to amend or resend your Federal or Michigan return.

The IRS will recalculate your taxes, adjust your account accordingly, and send any refund amount directly to you.

Also, the Michigan Department of Treasury is waiting for federal guidance to help taxpayers receive any state refund they may be owed in the easiest way possible