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rlwizard
Level 1

Should I pay the Fed Taxes due if I am expecting a refund after the unemployment adjustments ?

Filed electronically on Feb 12, 2021 and owed Fed Taxes.  I do not want to face penalties but also do not want to pay when I am expecting to receive a refund after the adjustments. What should I do ?
3 Replies
LenaH
Expert Alumni

Should I pay the Fed Taxes due if I am expecting a refund after the unemployment adjustments ?

Yes, you should pay what you owe on your 2020 return. It is always recommended to pay what you owe by the due date of your return. 

The IRS will be automatically adjusting refunds starting in May and will continuing into the summer.

 

IRS to recalculate taxes on unemployment benefits; refunds to start in May

Mike9241
Level 15

Should I pay the Fed Taxes due if I am expecting a refund after the unemployment adjustments ?

conflicting advice from Turbotax experts! I have seen previous threads from them where they say not to pay and now this one which says to pay. It's not all Tuurbotax's fault. no guidance was issued by the IRS though you would think TT would be able to contact it to get the proper info. 

rlwizard
Level 1

Should I pay the Fed Taxes due if I am expecting a refund after the unemployment adjustments ?

I agree Mike.   There has been no consistent communication and each answer is different.   I do not want to incur a "late" penalty but but I am not willing to allow them to hold onto my money for an extended period of time.   As we have seen in the past the "May" refunds could be late into the year before they get processed.

 

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