$10,200 deduction effect on AGI

[jimmy-james]

We filed our federal taxes as soon as we could this year.

We got our refund.

We anticipated using some of that to offset money owed at state and local level.

So now $10,200 of unemployment is exempt but directions are to NOT file an amended return.

OK. I won't.

So what's our federal AGI and when do I get confirmation?

I need this number for state and local filing and while I can simply do the math to get this, I am a little leary about putting an income value in state and local returns that does not align with the 2020 return i filed.

I've started an amended return in the TT software to confirm my math and what the proper AGI would be and it all checks out.

But still, I have no idea when/if I will ever have confirmation that the official AGI on record at federal level is adjusted to reflect lower amount.

[Critter-3 · Accepted solution]

Corrections of the unemployment change will be done automatically by the IRS sometime in May so they said.   So if you used the amendment program to make the correction  you can see the new expected refund amount and also see how this affects the state/local returns.   Knowing the new balance due for the state/local can be used to just send in the new balance due and later when everything washes out you can send in an amended state return if required.  Check with your state to see what needs to be done ( if anything ) to fix this situation.  

[Cynthiad66]

IRS is making adjustments for all returns that are filed prior to the change.  The adjustments the IRS makes will reflect on the attached state return.  Depending on the state but TurboTax will do that.  The AGI will change and you will have that information on the notice that you will eventually receive after the correction has been made.

If you’re trying to amend your return, hang tight. There’s no need to amend your federal return to update your unemployment income—the IRS announced that they will automatically adjust your return and send any additional refund amount directly to you. 

However, some people may now be newly eligible for additional deductions and credits not already included on the original tax return. In these cases, you will likely want to amend your return to claim these additional dollars. You can see more details around who should amend here. Waiting to amend, if necessary, will not delay any refund you may newly qualify for.

We’re working hard to update TurboTax to the most recent IRS changes along with the American Rescue Plan and are still waiting on how individual states are handling these changes. Go here to see whether or not you’ll need to amend your state return for your unemployment income.

If you need to amend your state return or update something other than unemployment, try again after next week. We want to make sure your amendment is done quickly and accurately with the latest guidance from your state and the IRS. Check back here for updated dates in the future.

Sign up here to be notified when you can continue to amend your return.

Related Information:

• How do I amend a 2017 return in TurboTax?
• How to amend (change or correct) a return you already filed

[jimmy-james]

Thanks. This seems logical.

Rather than worrying about putting a number I know is right but not officially right yet, I should be able to use it for my state and local returns and if something comes up, I can amend the appropriate return(s) once the dust clears. I think running through the software as if I were amending and doing state in the program and all aligns with my numbers, I should be good. Unfortunately, I don't use TT for state filing as the price for state add on never seems reasonable by comparison to the federal.