Form 1040X and New Unemployment tax law changes

[jdcoxen]

Question....

I neglected to add my son's 1099-G on his return back in Feb.   NH never sent a hard copy and I completely forgot.  I then saw to amend the return (saw this early March), I needed to wait until 3/25 or so for form 1040X.   But now the unemployment tax law has changed and I did not submit 1040X yet.

Question is a follows:

1. I think I need to AMEND his return regardless, correct??  

2.  He DID NOT pay any federal taxes on his unemployment, and made $3840.   So I assume they will adjust and he may PAY now on the amended return, but then they will review his again and pay it back based on new law?  Regardless, they need to know about the 1099-G I failed to submit.  Is this correct?

Spoiler

Thank you

[MaryM428]

TurboTax has been updated so that when you amend and enter his 1099-G, he will not be taxed on the first $10,200 in unemployment.

Although it is a low amount, it is better to amend and have the correct income records filed with the IRS.

To Amend follow the steps in this article:  How to Amend.

[Opus 17]

Taxpayers who already filed and included their unemployment income have been instructed by the IRS to wait. It is possible that the IRS will adjust their tax returns without requiring an amended return.

However in your son’s case, since you never reported the unemployment compensation, you do need to file an amended return and report it. It will not be taxable if it is less than $10,200, but it may change certain other calculations.  TurboTax may refused to allow you to e-file the tax return amended tax return if there is no change in the dollars owed or due as a refund, in which case you should print the amended tax return and mail it to the IRS.

[jdcoxen]

Thank you.   I just tried to amend it and it told me to wait until further guidance.   I will keep an eye on it.

[jdcoxen]

Thank you!   I just tried to amend it and it told  me to wait.  I will keep an eye on it.