How will the third stimulus package affect my 2020 tax return since I’ve already filed?

[helmutbode1948]

I already filed my taxes for 2020. I owe the IRS. The new stimulus package will reduce the taxes on unemployment. Do I need to file an amended return or will the IRS make the amendment?

[DoninGA]

You will have to amend the 2020 tax return for the changes to the taxable portion of unemployment.  But Not at this time.

After the legislation has passed Congress and after the President has signed the legislation and after the IRS has written the rules, regulations and procedures.  And after the IRS has changed any forms or schedules to accept the tax code changes.  And after the IRS has approved the changes in the TurboTax program that apply to the tax code changes, then it will be available for the users of the tax preparation software.

This can take anywhere from several weeks to several months before it becomes available.

[SteamTrain]

IT will be a couple weeks before anyone really knows how the IRS is going to handle it.

I suspect the extra stimulus will be sent out based on what has already been filed for 2020 taxes....but for those who  haven't filed yet.....who knows.  I'd not send it until a 2020 tax return has been filed and accepted...but that's just if I was in charge.  There's already been massive problems with people having moved since filing 2019, and new bank accounts...etc....so (opinion) no one should get it until they file their 2020 taxes and thus, update their current situation.

The new exemption for taxes on unemployment ...that could take a month or three to work out.

[Johnbadel614]

filed already and clamed all unimploment did i clam to much allready pay full amount will i get some back  made to much to get break on oboma care

[MarilynG1]

@Johnbadel614 The IRS has not yet decided how they will handle refunds for taxpayers who already filed with Unemployment Income.

Click this link for more info on Unemployment and American Rescue Plan.