Question

Please explain the unemployment credit of 10k. I had unemployment plus wages. Did my taxes prior and turbo t sent me 2 notices. Checked IRS and nothing. Over 32k tax 19

Forum|Forum|4 years ago
July 4, 2021
1 reply
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Filed my return, had unemployment benefits which totaled 16,425. Return was accepted and I received in March. Then this unemployment tax thing comes about where the 10,200 is taken away. I received a well 2 noticed from turbo tax stating there was nothing for me to do but it looks like I'm getting more money back. Well I haven't and I got my transcripts from the IRS and there is nothing on there about the 10200. I had other employment and wages and I was over 32k for the year with my unemployment. (Whole amount not counting the 10200 to be taken away.) My taxable income minus deductions etc etc says 19 then if you minus the 10 it would be 9 which would allow me to qualify for earned income. So what is going on?

TurboTax Premier Online

VolvoGirl

Employee

You may need to amend.

If you have filed early before the exclusion, the IRS will recalculate your return for the new 10,200 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.

Just keep waiting. The IRS is sending them out in batches over the summer.

See 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

And see,

https://www.irs.gov/newsroom/irs-sending-more-than-2-point-8-million-refunds-to-those-who-already-paid-taxes-on-2020-unemployment-compensation

Do you need to amend your state return?

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