Refile State Taxes after Federal taxes are auto adjusted for $10,200 unemployment?

[EmmaH2125]

I filed both Federal and KS State taxes via TurboTax before the 3rd stimulus was approved so I missed out on the $10,200 unemployment exemption.  

Since the IRS will auto correct my Federal return and return a refund, what do I do with my KS State taxes?  I would assume I would need to refile/amend by KS taxes, but, the updates from the auto Federal refund will not be in my TurboTax Federal forms.

How should I do my KS refile/amendment  to take advantage of the $10,200 unemployment exemption for my KS State taxes?

[ErnieS0 · Accepted solution]

Kansas has not issued any guidance on how the state will deal with the $10,200 federal exemption for unemployment benefits.

The TurboTax federal program has been updated for the exemption. TurboTax will show a subtraction from income as if you claimed the unemployment exemption on your originally filed federal return. Therefore, you will not have to do adjust your federal information in TurboTax to account for the unemployment refund.

This also means your KS return was automatically adjusted since KS starts with federal income. However you will still have to either amend or get an automatic overpayment.

I suggest waiting to file an amended Kansas return. If you send one off now, the state may not know what to do with it.

[EmmaH2125]

This is a GREAT answer, and we will wait a few more weeks to deal with KS!  Thanx a ton!