Not sure if in the right place

[amoscara]

I filed My 2020 Taxes , received a letter from IRS something about Recovery Rebate Credit was wrong. I went back to check my taxes on the program and did an update , now I see im getting a credit (UCE) on Unemployment  for NJ.  This changes my taxes completely.  Should I file an amended tax return.   

Thanks 

Anthony M

[VolvoGirl]

No.  You've got 2 different things going on.  

For the Unemployment.  Sounds like you filed before the 10,200 exclusion?  The IRS will recalculate your return for the new unemployment exemption for you. 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.

They are starting to go out. See this new IRS article May 14, 2021
https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

You may need to amend your state return,
https://ttlc.intuit.com/community/state-taxes/help/do-i-need-to-amend-my-state-return/00/2134732

Then for the Recovery Rebate Credit.  A common adjustment is if you claimed the Recovery Rebate Credit on 1040 line 30 when you already got the Stimulus payments or got the second one after you filed or reported the wrong amounts. Do you have an amount on line 30? And you had to report the right amount in each box. If you put the total in 1 box it would give you the other amount again. The IRS knows they already sent it to you. Line 30 is only if you qualify more.

[amoscara]

Thanks for the reply and sorry for putting it in the wrong place,  The amount I put in line 30 was the wrong amount, so it deducted making the tax I owed less than I actually did. so If you remove that from line 30 the amount I owe is higher.  But now with the UCE and the correct amount in line 30 it changes the bottom line. thats  why I was asking if I needed to amend.  Thanks again

Anthony M