Unemployment credit on an amended return - how to remove it

[paula1307]

I filed my taxes in February, and a few days later realized I had not included a 1098-T form, for college tuition credit.

I collected unemployment in 2020, which was included on my original tax submission.

I did not  file an amended return, as advised, and today received my refund, direct deposit, related to the first $10,200 of unemployment that I received not being taxable.

I now need to file an amended return, to include my 1098-T form.  When I do that, the refund that I received for the unemployment taxes not being taxable, is included in the amount to be refunded.

Is turbotax going to issue an update, so that I can indicate that I received that refund?  If not, how exactly can I amend my tax return to be correct, and only include the 1098-T on the amended return?

[Critter-3]

This is going to be a bit tricky this year but the gist of it is that you must change the return to reflect the IRS correction BEFORE you start the amendment process.   So if you have already received the corrected refund for the unemployment change then open the return and undo any changes you made including removing the 1040X  then  make the unemployment change first and when the return looks exactly like what the IRS changed you can start the amendment process.  Click "Cancel Amendment" on the left side of your screen.  

[paula1307]

I need a little more help!

When I open turbotax, it displays my refund as being what I previously received plus the extra amount that the IRS direct deposited into my account for the tax break on unemployment.

When I start the amended return, the refund amount does not reset to 0, it resets to what I received in my direct deposit for the tax break on the first $10,200 of unemployment.

What number do I need to change, and on what form, to show that I already received that refund, so that the refund amount that I start out with is 0?

[Critter-3]

Ok ... so look at the new 1040 in the PDF ... if it reflects the return as changed by the IRS then that info is also shown  on the 1040X ...  

Look at the form 1040X …

Column A should have the figures from the original return, 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.

[paula1307]

That worked - thank you!!!!