When will the $10,200 of unemployment tax exemption go into effect?

[fbmcardl2]

@fanfare  I am using the online TT, thanks!

[fbmcardl2]

Using TT FreeFile online edition and want to amend 2020 return because there's an additional credit available because of the unemployment exclusion. Three questions:

1. We already got the IRS unemployment refund. But when we go to amend on TT it does not reflect the unemployment refund received and so the amended return is asking for a larger refund ($656) than we are due now ($200). Is there no way to fix that online?  Or does IRS just take care of that on their end?

2. When we use "tools" to view the amended return, the instructions say to mail it in. I thought it could be e-filed in turbo tax?

3. Is there a way to e-file the amended federal return and not file an amend state return since the original state return does not need to be changed because they already refunded the unemployment tax exclusion amount?

Many thanks to anyone who can answer one or all of the above.

[SoccerRefMon]

I amended two accounts yesterday. TurboTax applied the $10,200 credit appropriately to both. You may wish to look at your 1040X form to see what's happening.

I was able to file both electronically; no issues.

While our state refunds stayed the same - $0 - I wonder if we should file an amended state return, since our AGI changed due to the $10,200 credit. Any thoughts on this, anyone?

[maestrowork]

depending on the state.  if your AGI is lower you may want to at least figure out if your state taxes would be lower or if you qualify for credits etc.  In CA however unemployment benefits aren’t taxed so it makes no difference, here.  

[Critter-3]

@SoccerRefMon 

1. We already got the IRS unemployment refund. But when we go to amend on TT it does not reflect the unemployment refund received and so the amended return is asking for a larger refund ($656) than we are due now ($200). Is there no way to fix that online?  Or does IRS just take care of that on their end?   Amending  when the IRS has corrected the return is a little messy. See all the steps below ...

2. When we use "tools" to view the amended return, the instructions say to mail it in. I thought it could be e-filed in turbo tax?  When you are done amending the correct way you should be able to efile it in the FILE tab. 

3. Is there a way to e-file the amended federal return and not file an amend state return since the original state return does not need to be changed because they already refunded the unemployment tax exclusion amount?  You choose to efile the fed and mail the state ... then DON'T mail it.  

1) undo the amendment  and remove any other changes you may have made after filing ... if not make the corrections and then look again

How do I cancel or undo an amended return in TurboTax Online?

If you started amending your tax return by accident and would like to cancel the amendment:

1. Open your return if it’s not already open.
2. In the left menu select Cancel amend.
3. Select Yes, I want to cancel my amended return.

 

 

How do I cancel or undo an amended return in the TurboTax CD/Download software?

If you started amending your federal return by accident and would like to cancel the amendment, follow this process to correctly "unamend" your federal return:

1. Open your return.
2. Switch to Forms Mode (Windows instructions | Mac instructions).
3. In the left pane, select Form 1040X.
   • Windows: After the form is generated in the right pane, click the Delete Form button at the bottom of the window.
   • Mac: From the Forms menu, select Remove Form 1040X.
4. Follow the on-screen instructions to remove the 1040X from your return
5. Important: Go back through the TurboTax interview and undo any changes you made after you selected the option to amend your 2018 return, as merely deleting the 1040X will not undo those manual entries for you.

State Amendments

The best way to "unamend" your state return is to go through your state return from the beginning and keep your eyes peeled for amend-related screens or questions.

The amend question usually appears right at the beginning or towards the end of the state interview (never in the middle).

Correct any entries that have to do with an amended return, e.g.:

• Answer No when asked if you want to amend;
• Clear any amend-related checkboxes;
• Delete entries in the tax year field.
• Note: In a few state programs, you actually have to answer Yes to the amend question so you can revisit the screens that contain the information you want to delete.

If you still can't get rid of your state amendment form, try clearing your state return and starting over.

2)  review the return ... does it now show the return as changed by the IRS 

3) if so  log out and start the amendment process again ... this should solve your issue  ... when you are done review the 1040X for accuracy ...

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. 

On line 18 should be the amount of your original refund you received.

Then you will see your extra refund on line 22 OR  the new balance due you need to pay on line 20.

[fbmcardl2]

@SoccerRefMonThanks, but the question is after applying the unemployment tax credit correctly it is over-estimating the refund due because it's basing the amended return off of the original return and not  reflecting what IRS recalculated and already gave the additional unemployment refund.

And I have the same question: If there's zero change to State, does one have to amend State because the Federal was amended.

[fbmcardl2]

@Critter-3"2)  review the return ... does it now show the return as changed by the IRS"

No, it doesn't. I cancelled the amendment as you suggested and when I go back it still shows the original return, and the original refund, not the return as recalculated by IRS with the additional refund for the unemployment change. Any other ideas? Thanks.

[fanfare]

@fbmcardl2 

TurboTax Online does not give you a way to enter line 18 "as previously adjusted by the IRS".

This is a serious deficiency.

( You could call TurboTax  Support to find out if this is a true statement or there is a trick to make it happen. I don't think so.)

After going through the amendment to get your new or changed forms and schedules,

refer to the IRS Forms page at www.irs.gov.

The blank form 1040-X in fillable PDF format and its instructions are available there.

Refer to the Instructions for what is to be attached to Form 1040-X.

Do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.

[Critter-3]

@fbmcardl2 

Yes ... you must make the corrections before amending ... if this was for the unemployment exclusion  then either just revisit the 1099-G section to let the program update that section  OR   delete the 1099-G and reenter it again to force the change.   Now does the bottom line reflect the same as the IRS refund sent ?   (I did say it would be messy ... this would be easier if you used the downloaded program ... I don't know why TT has not made this option available yet.   You may need to contact TT support on Monday and have them push you a copy of the downloaded version).  

[fanfare]

@Critter-3 

"you must make the corrections before amending"

If you do that, your credits will appear, your 1040-X will show no change, and again you are stymied.

There's a big difference between "messy" and " not possible".

[Critter-3]

Last year TT gave you an option to either use the online amendment process or the download the amendment program  before the 10/15 closing of the online program ... they need to bring it back NOW since many users will not be able to amend without making overrides in the FORMS mode.   AND more specific amendment instructions need to be posted in a FAQ to help folks with this complicated issue since one change in the program automatically makes changes the IRS will not automatically correct like credits not on the original return. 

[fbmcardl2]

@Critter-3 @fanfare Thanks to you both. The question is who/how to get TT's attention to fix the online amendment process to allow for the IRS adjustments?

@Critter-3 I am confused by your screenshot for 2019. I see the same screen for 2020 but the problem is the online amendment process doesn't work to reflect the IRS adjustment for UCE. Here's what I see:

Amend (change) return

Amending is for adding new tax forms or making changes to your originally filed tax return. Not sure?

Amend using TurboTax Online

You can also amend by downloading Windows or Mac

[Critter-3]

Thanks for the heads up ... that download option was not available last week ... so to correctly amend the 2020 return for items the IRS changed that affects items the program will want to update automatically will require you to do some over rides in the FORMS mode.   This is very messy at best  this year because of the late tax law changes and the fact the IRS will not ADD forms not on the original return automatically  so the taxpayer needs to amend to get these extra items.   

However the column A of the amended 1040X  must reflect the latest return on file which is the one the IRS changed.  This is not impossible but ...   for non tax pros it will not be easy.  So calling TT support for one on one assistance may be the only option for many users.  

[fanfare]

messy?  it seems to me to be straight-forward.

 "for non tax pros it will not be easy."

I thought we just established the only issue is 1040-X line 18 with TurboTax Online.

[Critter-3]

If it is just line 18 then all is good but it is usually column A that is the issue this year if the program does the unemployment  correction AND adds the extra credits.