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?

Forum|Forum|4 years ago
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.

TurboTax Premier Online

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xmasbaby0

Employee

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

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.