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jgro1
New Member

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong

I filed my taxes before the new law, I received my $ for the taxes being recalculated by the IRS last week. BUT..I only received my EIC portion of the readjusted return and not the additional child tax credit that was created because of my AGI being lowered from not including the unemployment. Do I need to do an amended return to get the reaming amount?
9 Replies
Opus 17
Level 15

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong

Yes.  When the IRS makes the adjustment, they will adjust things on your return, but they don't add forms that you didn't originally include, like the additional CTC.

 

The problem is that, to make the amended return, the base return you must start with is the return after adjustments.  There would be two general ways to do this.  1, prepare an amended return for the UEC and EIC, and "file" it by telling the program you will mail the amended return.  Then prepare a second amended return to add the ACTC.   Or, prepare a new return with the correct UEC and EIC, "file" it by telling the program you will mail the return, then prepare an amended return.

 

The problem with #2 is that you would have to pay another fee, unless you used the program installed on your own computer.  The problem with both plans is that you can't prepare an intentionally inaccurate return with Turbotax--you won't be able to get Turbotax to prepare a return that has the lower UEC and the correct EIC but omits the ACTC (to use as your base for amending).  

 

I will flag this for a moderator, you may need to call customer support to see what they say. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Opus 17
Level 15

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong

Preparing an amended return on paper is not that difficult, I could possible try and walk you through it, although Turbotax should have a solution here. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
fanfare
Level 15

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong

if you do the paper 1040-X, you lose the e-File option.

 

As I understand it, for TurboTax Online users, you are out of luck.

Support can't change the software and can only confirm what has been posted here before about this situation.

 

with CD/download program, you can make manual edits.

It's not clear if doing that would also shut off the e-File  option.

Opus 17
Level 15

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong


@fanfare wrote:

if you do the paper 1040-X, you lose the e-File option.

 

As I understand it, for TurboTax Online users, you are out of luck.

Support can't change the software and can only confirm what has been posted here before about this situation.

 

with CD/download program, you can make manual edits.

It's not clear if doing that would also shut off the e-File  option.


If you create a return in the desktop program and use the override function to remove schedule 8812, that will block e-filing the primary return, which you then tell the program was filed by mail but don't actually file.  But then if you make the amended return, I don't think it can be e-filed since the program will detect that the primary return wasn't e-filed.  I don't think there's a way around paper filing.  That means a long backlog and a long wait for your additional refund.  However, amended returns can be filed for 3 years, so it might be better to wait for next summer to even try and file, and see if things calm down.

 

You will want to get your IRS transcript of the adjusted return, so you will know exactly what to use as the basis of the amended return. The adjusted return might take a while to be posted to the Get Transcript web site. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Critter-3
Level 15

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong

If the online users could choose to use the DOWNLOADED amendment program they could make overrides in the FORMS mode and then paper file the 1040X.   For many this may be the only option to be able to use the TT system for the amendments because of the odd situations that happened this year.   So when do you think they will make the download available ?  

fanfare
Level 15

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong

My question was if a workaround edit (not override) is figured out for Form 1040-X line 18 (overpayment), and you did e-File Form 1040, can you still e-File 1040-X?

I know an override is going to cancel e-File.

Critter-3
Level 15

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong

Maybe ... you don't know until you try since efiling amended returns is new.

fanfare
Level 15

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong

Let me revise my question.

What is the correct technique to adjust 1040-X line 18, using TurboTax CD/download program ?

Hal_Al
Level 15

The irs adjusted my 2020 tax return for the unemployment tax but the amount was wrong

Before amending, be sure you're entitled to The additional child tax credit (ACTC).  The ACTC is based on your earned income.  The unemployment adjustment would not change your earned income.  The EIC, on the other hand, is based on both earned income and AGI. 

 

But a lowering of your tax liability (by less taxable income) could shift some of your  CTC to ACTC.

 

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