If American Rescue Plan makes $10,200 of UEC in 2020 tax free, and I get a new 1099-G, how do I amend return in TurboTax?

[djw1234]

I'll follow the IRS instructions on this one, Critter.  They are specifically saying we MUST amend in order to get the EIC and NOWHERE does it say we must wait until after we get the refunded unemployment tax overpayments.  

[DoninGA]

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@djw1234 wrote:

I'll follow the IRS instructions on this one, Critter.  They are specifically saying we MUST amend in order to get the EIC and NOWHERE does it say we must wait until after we get the refunded unemployment tax overpayments.  

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You may not be able to amend the 2020 tax return using TurboTax at this time.

See this TurboTax support FAQ if you receive a message that amending is not yet available - https://ttlc.intuit.com/community/amend-tax-return/help/why-can-t-i-amend-my-return/01/2122917

[djw1234]

Yes, many of us are aware of this issue. I'll keep checking TT to see if they've made the necessary updates but as soon as they do I'll be amending my return per the IRS instructions. I've amended before and know how long it can take to receive that amended refund.

[Mullindw]

Very disappointed in TT and will be making a change next year although it is convenient to down load the previous year's return.  For my case where I bought a Costco Window's CD and not the on-line stuff,  for SC anyway, it was updated a week ago.  SC like many states does not forgive the taxes owed.  So TT was updated for me.  Now my problem with TT,  I signed up for the email from TT that would tell me when the program update was complete.   I bet nobody received it also.   I never received any email.  But saw the update which automatically updates the program and filed Fed.   As a customer, we should not have to rely on these forums which may be accurate or not.  It is simply a way for TT to provide information without any risk exposure of bad info.    Also Tax Act provided state by state how each state was handling the unemployment income on their web site  which confirmed to me that the program was correct and now accurate.  Last year, TT provided bad information for my son's return which resulted in his return being delayed 9 months.  Sorry TT, I am gone.

[SeaLady321]

I JUST COMPLETED ANOTHER UPDATE - I NOW HAVE A PLACE TO ENTER 1099G INFO.  THANKS EVERYONE I AM ALL SET.

Well I am using desktop version Home and Business, updated again today and NO it does not work.  There is NO place to input 1099G unemployment, the amount is under the 10200.00 BUT tax was withheld both Fed and State and there is no way to claim that back since there is no place to input the 1099G.

I found a very involved way of overriding this, but then when you go to run error check guess what - No Good.

Plus have no idea, even with override if this info then transfers over to the state return.

I called TT and talked to their "AI" which just then turns you are and sends you an e-mail right back to here.

Getting no where.  Thing is we owe this year, and the tax withheld on the Unemployment cuts what we owe in half so this is something I really want to solve.  So far my only idea is to write a letter that I submit with the taxes explaining 1099G not included in return and let the IRS input it manually.

TT seems to have more and more and bigger and bigger issues each year - last year they forgot to give people a way to enter 1095A and then finally corrected that - now no place to enter unemployment - HOW can they be so out of touch to not realize some paid had tax withheld?

[DoninGA]

@SeaLady321 

To enter unemployment compensation

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Under Unemployment
• On Unemployment and Paid Family Leave, click the start or update button

Or enter unemployment in the Search box located in the upper right of the program screen. Click on Jump to unemployment

[holl22]

I do not believe you will be issued a new 1099g. As far as what I have READ, the  IRS  will make the adjustments on their end if you have filed before TT was updated and send you the refund if necessary. 

[djw1234]

For anyone that's been waiting to amend their 2020 return in order to claim credits that are now available due to the unemployment tax breaks in the American Rescue Plan, TurboTax is now allowing those returns to be amended. Just efiled mine a couple minutes ago. 

[DeanieO]

It was my understanding that if we are to get a tax refund based on $10,200 of our UEC not being federally taxable the IRS will adjust it and we are not supposed to file amended returns??

[djw1234]

If the tax break lowers your AGI to the point that you qualify for other tax credits, then the IRS has said you must amend to get those credits. In our case we now qualify for the EITC when we didn't before.

[Critter-3]

Yes you will need to amend HOWEVER you must WAIT for the original return to be fully processed AND you have gotten the original refund or gotten a bill for the remaining balance due after the IRS makes the changes to the return .   THEN and only then should you start the amendment process  AND the return must start with the changes the IRS made to the return BEFORE you click on the amendment option ... this can be tricky.  Hopefully you kept a PDF of the return as originally filed so you know how it looked originally.  When you open the return the program should update the return to reflect the Unemployment and PTC changes so make sure you don't try to make the changes a second time ... make sure to look at the form 1040 as you go.  

To see how to amend your taxes, click here: 

Steps to amend in TurboTax

How to file amendment

Look at the form 1040X …

Column A should have the figures from the original return (or as changed by the IRS), Column C the corrected figures and Column B the differences between the other 2 which needs an explanation on page 2 of the form 1040X.

If you completed it correctly you will see an entry on either line 16 OR 18:

On line 16 should be the amount you paid with your original return. If you paid nothing already then this line should be zero.

On line 18 should be the amount of your original refund you received.  If you have not received your refund yet then you need to wait for it.  If the refund changes from what you expected then this line must reflect that change.

Then you will see your extra refund on line 22 OR  the new balance due you need to pay on line 20.

[phannan]

Where does this stand as of 5/7/21?  Has the IRS issued instructions?  I filed before the legislation was passed and  reported unemployment comp in 2020.  I read somewhere the IRS will simply make the required adjustments to returns filed before the legislation was passed.

[djw1234]

@phannan 

The IRS will make the required adjustments to automatically refund any taxes you may have paid into UC. However, if the tax break causes you to now be eligible for other credits (Earned Income, especially) you'll need to file an amended return.

[Pswaugh]

I received a 1099-G for unemployment compensation. Where on the tax return do I enter the $10 200 tax break??  I am not filing a 1040 just a 1099

[DoninGA]

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@Pswaugh wrote:

I received a 1099-G for unemployment compensation. Where on the tax return do I enter the $10 200 tax break??  I am not filing a 1040 just a 1099

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You are filing a Form 1040 since that is the federal tax return where you have to enter your unemployment compensation from the Form 1099-G.  The unemployment compensation exclusion of up to $10,200 is included in the TurboTax program and will automatically exclude the compensation if you are eligible.  You only need to enter the UC from the 1099-G.

Enter unemployment in the Search box located in the upper right of the program screen. Click on Jump to unemployment