2020 Unemployment Income Tax | How do I generate an amended return?

[BTRR]

I use TT2020 desktop and TT2021 desktop.  I filed my 2020 return before the change that exempts the first $10,200 of UI from being taxed.  Subsequently, out of nowhere, with no explanation, I received a check form the Treasury.  My best guess is that they amended my return and issued a refund.

How do I "generate" a 2020 return that reflects the amendment the Feds made?  (1) Will TT2020 automatically do this when I open my 2020 return in TT2020?  Or (2) should I open my 2020 return in TT2020 and make the change manually?  Or (3) do something else?  Which one... 1... 2... or 3?  Please advise.  Thanks.

[LeonardS]

You do not have to file an amended federal return that reflects the amendment the feds made.  However, if your state taxes unemployment and they followed the federal exemption you may want to file an amended state return if you did not receive this exclusion from your state tax return.  Contact your state to find out how they treat unemployment benefits.

This TurboTax link How do I contact my state Department of Revenue? has information you may find useful.

[BTRR]

I understand that I do NOT need to file an amended 2020 Federal return... and as such, I won't do so.  However, in order to (1) file an amended 2020 State return, and (2) have TT2021 transfer-in an accurate 2020 Federal return (when TT2021 is first launched), I need an amended/accurate 2020 Federal return.

HOW do I "generate" an accurate/amended 2020 federal return?  Will TT2020 do this (when first opened)?  Or must I do it manually?  Or some other way?

[ErnieS0 · Accepted solution]

TurboTax updated its 2020 software last March to add the exclusion for the first $10,200 of unemployment benefits for households making less than $150,000.

Your CD/Download software should reflect this as if the exclusion was in place when you filed. You should not have to create a "mock" amended return or make any changes in TurboTax.

1. Open 2020. 
2. Tap Online > Check for Updates
3. Tap Forms in the top right (next to Flags)
4. Tap Schedule 1 in the left column. You should see UCE -10,000 on line 8, which is the unemployment adjustment
5. Tap Step-by-step in the top right (where Forms used to be_

Amending state

You can amend state if everything looks good. Select the State Taxes tab and go through the screens until you see a screen asking whether you want to amend your state return (the state programs are all different).

Amend state. You will have to print and mail an amended state return in most instances.