Covid Relief Bill Unemployment Tax Changes - Already Filed

[bmactara]

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.

[DoninGA · Accepted solution]

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.

[bmactara]

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

[dbarish]

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?

[PattiF]

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.

[robin56]

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?  

[DoninGA]

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@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?  

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READ the answer provided on this thread.

[RobinMorra]

Will we be notify when we can amend our taxes?

[loismcswain]

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

[Critter-3]

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. 

[wdcar20]

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

[PattiF]

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

[fanfare]

@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.

[kiraj]

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

[Critter-3]

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.