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Unemployment Credit and refunds

I have searched this question and the answers I'm reading aren't quite clear.   Everyone is asking if they should file an amended return and all answers are no.

 

I filed federal and state in February.  Then, the unemployment exclusion credit was enacted on March 11th.  I received state, no problem (CA). 

The IRS "where's my refund" said still processing.  My understanding was the IRS was going to adjust the unemployment income ($10,200) to returns that had been filed, but not refunded, yet.


However, today (April 15), I found that the IRS refunded my return and DID NOT exclude the $10,200.  My refund was directly deposited.

My question is:  Is the IRS going to issue a second refund automatically?  And this is why I should not file an amended return?  Because my Turbo Tax program reflects that change now post filing.

 

Thank you

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4 Replies

Unemployment Credit and refunds

 

Here is why you do NOT amend your return for unemployment:

Please read this very recent news from the IRS:

 

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
ThomasM125
Expert Alumni

Unemployment Credit and refunds

@SMLANZA The IRS will send you an additional refund without you having to do anything further.

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Unemployment Credit and refunds

@SMLANZA 

If you try to amend for UEC with TurboTax you will get nothing.

Why?

A TurboTax update changed your return, and your original return is gone.

You can only amend against the original return that you filed.

Did you make a paper copy of the original return for your records?

 

In this situation, be glad the IRS is re-computing this for you.

Unemployment Credit and refunds

Thanks smasbaby!

 

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