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May 26, 2021
Question

I was sent a letter from tt saying i might need to amend.im comfused on if i should or shouldnt.

  • May 26, 2021
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I received an email from tt telling me i should amend but egerything is saying not to.

1 reply

May 26, 2021

the answer is maybe or maybe not.  this relates to taxpayers who filed before the ARP act and thus did not get the benefit of up to $10,200 of Unemployment Compensation being nontaxable. Also there was no requirement to repay excess credits received if you had Obamacare. the IRS will automatically adjust for these and make a refund - might take all summer. however, certain taxpayers may not have taken certain credits or deductions because they didn't qualify before the ARP act.  those taxpayers may need to file amended returns.

 

also, some states will follow the IRS and make automatic refunds, others want an amended return.  certain states did not make the change so UC remains fully taxable. 

 

here's a link to see your state but you should check your state's website to make sure there wasn't a subsequent change

 

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