topic Covid Relief Bill Unemployment Tax Changes - Already Filed in Deductions & credits

Covid Relief Bill Unemployment Tax Changes - Already Filed

bmactara — Thu, 11 Mar 2021 19:46:46 GMT

So, I am now seeing that there will be a $10,200 unemployment tax waiver/credit/deduction (I am unclear on which is the specific correct phrase) - If I was temporarily on unemployment but have already filed my 2020 taxes (and received my return) am I simply SOL?

Am I able to file an amended return through turbotax, and has turbotax already added/adjusted to account for this deduction/waiver? If I am understanding it correctly, because I had withholdings taken out of each unemployment check, this could actually increase my refund rather significantly, so I am hoping to get some answers here as I have been unable to find any elsewhere.

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

DoninGA — Thu, 11 Mar 2021 19:48:54 GMT

You will be able to amend your 2020 federal tax return to include the unemployment exclusion, but not right now.

After the legislation has passed Congress and after the President has signed the legislation and after the IRS has written the rules, regulations and procedures. And after the IRS has changed any forms or schedules to accept the tax code changes. And after the IRS has approved the changes in the TurboTax program that apply to the tax code changes, then it will be available for the users of the tax preparation software.

This can take anywhere from several weeks to several months before it becomes available.

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

bmactara — Thu, 11 Mar 2021 19:57:27 GMT

@DoninGA While disappointing it will be such a long time-frame, that makes sense and thank you for the thorough answer!

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

dbarish — Thu, 11 Mar 2021 21:57:43 GMT

Thanks for the answer. Without the first $10,200 tax free, I owe $500, with it, I get a refund of $700. Does that mean I have to pay now and get an even bigger refund later?

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

PattiF — Thu, 11 Mar 2021 22:10:13 GMT

You do have until April 15 to pay the tax due from your filed return. The date to pay may be extended past April 15 as it was in 2020. You can reconcile what was owed with what will be refunded on the 1040X.

Re: Covid Relief Bill Unemployment Tax Changes - CHANGES AS OF 03112021

robin56 — Fri, 12 Mar 2021 15:31:17 GMT

Will turbo tax update the TOOL to exclude the first $10200 of unemployment (EXCLUDED FROM TAXES) that was approved in Biden's COVID RELIEF that was signed this week. When will that happen?

Re: Covid Relief Bill Unemployment Tax Changes - CHANGES AS OF 03112021

DoninGA — Fri, 12 Mar 2021 15:44:59 GMT

@robin56 wrote:

Will turbo tax update the TOOL to exclude the first $10200 of unemployment (EXCLUDED FROM TAXES) that was approved in Biden's COVID RELIEF that was signed this week. When will that happen?

READ the answer provided on this thread.

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

RobinMorra — Fri, 12 Mar 2021 16:02:15 GMT

Will we be notify when we can amend our taxes?

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

loismcswain — Sun, 14 Mar 2021 00:38:42 GMT

Will Turbo tax notify us when we are supposed to amend our tax refunds after everything is resolved?

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

Critter-3 — Sun, 14 Mar 2021 01:28:08 GMT

TT has sent emails in the past to alert users when something needs to be changed that affected them so make sure you watch your email even the spam folder daily.

Re: Covid Relief Bill Unemployment Tax Changes - CHANGES AS OF 03112021

wdcar20 — Thu, 18 Mar 2021 16:56:06 GMT

What happens if I already filed and paid what I was told. When will I be able to amend and get money back. How do I get the proper amounts so I can amend if possible

Re: Covid Relief Bill Unemployment Tax Changes - CHANGES AS OF 03112021

PattiF — Thu, 18 Mar 2021 20:34:18 GMT

Here is an article with information about the Unemployment changes if you have already filed your return.

Re: Covid Relief Bill Unemployment Tax Changes - CHANGES AS OF 03112021

fanfare — Fri, 19 Mar 2021 15:10:28 GMT

@wdcar20

You should not have to amend, IRS should handle this for you,

but if you do have to amend,

you will file the same numbers again but your tax due is reduced so you get a refund.

this requires the TurboTax program update.

1040-X can be e-Filed for e-Filed 2020 tax returns.

Wait.

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

kiraj — Mon, 22 Mar 2021 15:10:55 GMT

Turbotax online and H&R block online have the update.

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

Critter-3 — Sun, 18 Apr 2021 00:26:28 GMT

STOP STOP STOP trying to amend any return with the unemployment and/or PTC repayment on it ... the IRS said they will make the corrections themselves and either send you the refund or bill you for a balance due or reduced balance due. If you already got the original refund and they owe you more they will send it ... expected to happen sometime in May at best. If you already paid the original balance due they will account for that amount in their calculations so just sit tight.

DO NOT AMEND the return ... the IRS is overwhelmed as it is so don't add to the pile of work they need to wade thru. Patience will be needed by all as the IRS attempts to dig out of this unprecedented situation.

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

DMH26 — Thu, 29 Apr 2021 16:30:22 GMT

This is the same information I received from my Congresswoman's office: the IRS will be taking care of the unemployment earnings tax exemption and making the adjustments to your tax filing. The tool for them to do this should be in place and tax refunds issued in May.

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

mdcommuter — Thu, 29 Apr 2021 20:46:01 GMT

It's great that TurboTax pushed an update to include the unemployment exemption amount, but I filed before the update and now my original Federal forms have updated to reflect the unemployment exemption even though that is NOT what I filed with the IRS in early March. This update to my forms is impacting completion of my state return (due May 17). Is there a way to get the original federal tax file back into my Turbo Tax.

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

LinaJ2020 — Thu, 29 Apr 2021 23:22:31 GMT

If you have filed, you do not need to amend unless you qualify for other credits or deductions due to a reduced AGI.

For details from the IRS, click here: No amendment

Per IRS, "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 your state, it depends on which state you are in. Not every state conforms to the federal unemployment exclusion rules and guidelines. Most of the federal and state sections in TurboTax program have been updated. As the information under Federal section will be transferred to the State, please follow prompts in the program to amend your state return if needed. To verify if you need to amend your state return, contact your state here: Your state

@mdcommuter

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

JulieO — Wed, 02 Jun 2021 14:34:53 GMT

I understand that the IRS is stating this will happen automatically (but when?) this also effects your state return and they are requiring you to file an amendment. So if the federal government is taking care of it automatically how are you supposed to file a state amendment as the federal has to be accepted before you can file an amendment with the state.

Re: Covid Relief Bill Unemployment Tax Changes - Already Filed

Critter-3 — Wed, 02 Jun 2021 14:41:53 GMT

They started processing those in mid May but they expect it will take most of the summer to process the MILLIONS of returns that got dropped into a department that usually handles a few thousand returns per year.