Unemployment Exlusion Already filed and received refund

[TAM48]

I have already filed both my federal and state taxes and receivedy refund before the Unemployment Exclusion. Will the IRS correct/ amend my return automatically or do I myeed to amend my return?

[MinhT1]

The IRS says in this document:

If you have already filed your 2020 Form 1040 or 1040-SR, you should not file an amended return at this time. The IRS will issue additional guidance as soon as possible.

[TAM48]

Is there any kind of timeline for the IRS...Illinois has posted on its IDOR website that it will start working on people who have already filled next month.

[ReneeM7122]

The IRS hasn't posted a timeline, but they do have a tool that you can use to check the status. Here is the link.

[TAM48]

The link provided is to check the status of my refund. I have already received my original refund whoch inclided my unemployment. How will I know the corrected amount since my original refund did not include my unemployment exclusion?

[SamS1]

Renee and Minh gave great responses.  Couple things you can try that will re-calculate your refund in TurboTax.  From your home page scroll down till you find "Add a State" on the left side of the screen then select.  We are not adding a state but this will open your return back up to review your refund and compare to your filed refund.   Select "Federal" in the left column then review your 1099-G input.  You should be able to see the new refund amount at the top of the screen.  Compare to what your filed refund was from your Tax Home page and the difference will be the additional refund to expect once the IRS starts processing returns previously filed with unemployment benefits.

[rjs · Accepted solution]

The IRS just issued the following announcement less than an hour ago.

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

So, for tax returns that have already been filed with unemployment income, you should NOT file an amended return. The IRS will recalculate the tax return that you already filed, but it might take several months. See the IRS announcement for details.

[TAM48]

Thank You, my original tax refund did not qualify me for EIC but with the Unemployment Forgiveness it will make me eligible for EIC so will I have to wait until after I receive my corrected refund until I can amend my return to receive EIC since it was not on my original taxes filed?

[MarilynG1]

@TAM48 Yes, that is correct.  You will be able to claim the EIC (if eligible) when you amend your return, as the Unemployment Exclusion will also be included. 

You may want to run through the Unemployment entry section first when amending to make sure this happens, then go through the Earned Income Credit section. 

Click this link for more info on Unemployment and the EIC. 

[TAM48]

Thank You, so to be clear I should wait to amend after the irs and state has made automatic adjustments or should I amend right away to receive EITC? After taking away my my unemployment my AGI is about 47,000 married filing jointly 2 children so I would qualify for EITC. Also on Turbotax online when I signed in and went to see what the amend return looked like it already made adjustments showing what I should have received on both state and federal returns but of course wouldn't let me amend until further guidance from the IRS.

[ReneeM7122]

You should wait to amend.  If you amend now, it can cause a delay.  Here is an IRS link with information about whether you should amend your return.