Payment due now looks like a refund?

[LoriJ91]

My daughter filed 2020 taxes in February and had to pay federal tax due to having unemployement payments.  Now, we go into Turbo tax and her file shows a refund due.  Does this mean that the amount paid will be refunded plus the new refund amount?  How do we know when and how this will be done if the IRS is doing this automatically?  "Confused"

[CatinaT1]

Have you already filed her return?  If so, we are still waiting for guidance on how they will handle this.  Do not amend her return.  Wait to see what the IRS determines for a solution.

[LoriJ91]

Yes, we filed and paid in February.  But now, going into the turbotax the amount shows a refund not a payment, so I am confused as to what to do, what to expect and when this will all happen. 

[DianeW777]

Do nothing now.  The IRS will adjust the return and when the payment is applied they will see the resulting overpayment and then refund it to your daughter.

The IRS does NOT want you to amend the return for the new unemployment benefit exclusion, rather they will make the final adjustments.  It will take some time so don't be concerned for a while.