topic unemployment tax break in After you file

unemployment tax break

SoccerRefMon — Thu, 01 Apr 2021 02:45:49 GMT

I filed my federal and state taxes on March 9, before the Recovery Act was signed. My TurboTax now shows a refund for my federal taxes. I've been told to not do anything; however, my state taxes owed have changed. TurboTax says that I should get a refund from my state. How do I go about getting this? File an amended return? Or wait?

Re: unemployment tax break

SweetieJean — Thu, 01 Apr 2021 13:50:53 GMT

See these re State:

How is my state taxing unemployment income? (intuit.com)

Do I need to amend my state return to update my un... (intuit.com)

Re: unemployment tax break

SoccerRefMon — Mon, 12 Apr 2021 15:43:53 GMT

Thanks, SweetieJean. But what about my federal return? The return that I filed back in March using Turbotax says that I owed $1,779. It now says that I get a $58 refund. Is that after paying the $1,779, or should I not pay anything and wait to get my refund?

I don't want to be hit with penalties if I should have paid.

Re: unemployment tax break

VolvoGirl — Mon, 12 Apr 2021 15:49:18 GMT

I think the new refund is the new amount and you don't have to pay the original tax due. If you did pay it then the IRS probably would send it back to you plus the $58.

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

Re: unemployment tax break

SoccerRefMon — Mon, 12 Apr 2021 16:24:05 GMT

Thanks for responding, VolvoGirl.