Unemployment exemption changes tax bracket

[Jem1050]

Hello. Our AGI for 2020 was $153,000. We received a reduced stimulus check in the latest stimulus because we were over the limit of $150,000. With this new unemployment exemption, our new AGI is $136,000. Is there any way we can recoup the remainder of the stimulus check? 

[Opus 17]

If you filed an amended tax return, that would not only re-calculate your income tax based on the new exclusion, but it would also calculate a recovery rebate which would make up the difference between the stimulus payment you received and what you qualify for. At this time, the IRS is asking taxpayers affected by the new unemployment exclusion to wait. The IRS commissioner testified to Congress that it might be possible for the IRS to automatically re-calculate affected tax returns but they have not made a formal announcement of this.  Until the IRS makes a formal announcement of how this situation should be handled, you should wait for additional instructions.  At best, the IRS will figure it for you and send you the money, at worst, you will have to file an amended return to request the money which will take six months to process.

[Jem1050]

Thanks! I do have to file an amended return, at some point. I guess it’s best to wait until they work out everything on their end before I amend. Thanks, again!

[Opus 17]

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@Jem1050 wrote:

Thanks! I do have to file an amended return, at some point. I guess it’s best to wait until they work out everything on their end before I amend. Thanks, again!

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If you have to file an amended return for other reasons, that's going to be tricky.  If the IRS decides to process the UEC issue on their own, you will need to wait for that to happen.  Then, if you need to file an amended return for another reason, the base return that you will be amending will be the return that the IRS has on file after their adjustments, and not the return you filed.  You would have to re-create in Turbotax the adjusted return, and then use that as the base return for your amended return.  You are welcome to come back here for more advice once the IRS has announced their policy for the UEC exclusion.