Question

I had already paid my tax bill, but now I am to receive a tax refund due to the unemployment tax credit. Will the IRS refund my original tax bill with the refund?

Forum|Forum|5 years ago
May 26, 2021
1 reply
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I filed and paid my original 2020 tax bill in April 2021. The unemployment tax credit changed my tax bill to a tax refund. Should I file an amended return?

TurboTax Deluxe Online

VolvoGirl

Employee

No the IRS will send you the refund. It will be for the difference. You don't get the first tax due back except that it's included in the refund.

If you have filed. The IRS will recalculate your return for the new unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

They are starting to go out. See this new IRS article May 14, 2021
https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-exclusion-periodic-payments-to-be-made-may-through-summer

You may need to amend your state return,
https://ttlc.intuit.com/community/state-taxes/help/do-i-need-to-amend-my-state-return/00/2134732