topic How to update 2020 tax returns to reflect unemployment adjustments made by IRS? in After you file

How to update 2020 tax returns to reflect unemployment adjustments made by IRS?

ktwizzlerstix — Tue, 19 Oct 2021 21:06:17 GMT

If we e-filed through TurboTax before the 2020 tax break on unemployment benefits was implemented and the IRS automatically corrected our tax return/requested we not file an amendment, how are the corrections made by the IRS being updated in TurboTax to ensure our 2020 tax return is accurate: 1) For other purposes, ie: submitting with current FAFSA applications; and 2) When utilized to prepare 2021 tax returns? Should we create and use an amended return but not actually file it or does the IRS/TurboTax further facilitate this?

Re: How to update 2020 tax returns to reflect unemployment adjustments made by IRS?

Miss MCJ2 — Tue, 19 Oct 2021 22:17:08 GMT

The refund of the tax paid on the first $10,200 of unemployment did not change the fact the unemployment was part of your income. You can use your return as it was filed for FAFSA. You had the same amount of income and just paid less income tax on it.

Re: How to update 2020 tax returns to reflect unemployment adjustments made by IRS?

fanfare — Tue, 19 Oct 2021 23:02:36 GMT

The UCE will not affect your 2021 tax return.

If you do update your tax return, your TurboTax 2020 AGI will be incorrect and you won't be able to e-File unless you remember what happened and adjust accordingly.