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July 3, 2021
Question

I'm amending my 2020 return because the unemployment deduction was not considered. Now the amount refunded is the same as the amount due on the original return. Why?

  • July 3, 2021
  • 1 reply
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Why is the amount refunded on the fed return the same as the original amount due? State amended the return automatically and sent me a refund.

1 reply

Employee
July 3, 2021

Stop.   The IRS does not want you to amend for the unemployment tax law change.   The IRS is recalculating your refund and issuing an extra refund without the need for you to amend.

 

 

The IRS began to send out the additional refund checks for tax withheld from unemployment in May.  The refunds are being sent out in batches—starting with the simplest returns first.   If you are eligible for the extra refund for federal tax that was withheld from your unemployment the IRS will be sending you an additional refund sometime during the next several months.  TurboTax cannot track or predict when it will be sent.  The IRS has not provided a way for you to track it, so all you can do is wait for the refund to arrive.

 

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve-already-filed-my-taxes/00/2081053

 

 

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-may

 

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-exclusion-periodic-payments-to-be-made-may-through-summer

 

 

https://ttlc.intuit.com/community/tax-credits-and-deductions/help/am-i-eligible-for-a-new-credit-or-deduction-because-of-the-unemployment-income-exclusion/01/2211778

 

 

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

 

 

 

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation

 

 

You *might* need to amend your state return for unemployment that was taxed by your state.

 

 

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

 

https://www.kiplinger.com/taxes/state-tax/602307/taxes-on-unemployment-benefits-a-state-by-state-guide

 

 

https://www.kiplinger.com/taxes/602542/irs-sending-more-unemployment-tax-refund-checks-in-june?rid=EML-today&rmrecid=1883531033&utm_campaign=20210611-today&utm_medium=email&utm_source=today

 

 

 

https://www.cnet.com/personal-finance/taxes/more-unemployment-tax-refunds-are-arriving-but-when-heres-what-we-know/

**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.**
Critter-3
July 3, 2021

It is very possible that the unemployment exclusion will have no affect on the return so did you complete the amendment correctly ?   Even if you are not going to file the 1040X you can use it to see the change to the bottom line if you wish.    So did the program or you  add the exclusion before you started the amendment process ?    Is column A the same as the original return ?    Look at Sch 1 line 8 ... is the exclusion amount listed there ?

 

Look at the form 1040X …

 

Column A should have the figures from the original return, Column C the corrected figures and Column B the differences between the other 2 which needs an explanation on page 2 of the form 1040X.

 

If you completed it correctly you will see an entry on either line 16 OR 18:

 

On line 16 should be the amount you paid with your original return. 

 

On line 18 should be the amount of your original refund you received.

 

Then you will see your extra refund on line 22 OR  the new balance due you need to pay on line 20.