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Returning Member
posted Sep 15, 2021 5:59:15 PM

EITC and the Unemployment exemption

On my 2020 return Before the tax exemption for Unemployment passed I paid out a little over $100 for my taxes and did not qualify for EITC due to the taxable income boost. AFTER the Exemption passed I qualified for the EITC but only received $800 for my refund when with the EITC I was supposed to receive $4-5K. I filed an appeal (Because Turbotax emailed me informing me to do so) but I'm lost as to where the extra $4K+ for the EITC and CTC went. When will I be refunded the amount I paid out and where is my EITC and CTC for 2020?

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2 Replies
Level 15
Sep 15, 2021 7:20:27 PM

You said you filed an "appeal."   Do you mean that you filed an amended tax return---on a Form 1040X--- in order to get the earned income credit and ACTC?  It is taking months for the IRS to process amended returns.

 

 

Even during “normal” times it takes about four months for the IRS to process an amended return.  During the pandemic and due to the severe backlog at the IRS it is taking much longer—six months or more for many amended returns.  Do not expect quick results from amending.  When the IRS issues a refund for an amended return it will be by check.  They do not make direct deposits for refunds for amended returns.  You can watch for information here:

 

 

 

https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1

Level 15
Sep 16, 2021 7:40:55 AM

What the IRS has said, is that if you claimed EIC, and the UEC changed your EIC eligibility, they would also adjust the EIC.

 

If you think you can get more EIC, you can try and file an amended tax return, but the background for the amended return must be the tax return after the IRS UEC adjustment and not the return you originally filed.  Getting Turbotax updated to the current return on file with IRS can be tricky, and you will probably need your IRS transcript so you can understand all the adjustments and make sure your tax file matches the IRS before you start amending. 

https://www.irs.gov/individuals/get-transcript