Question

I completed my 2020 NC Tax return and efiled on approximately 3/36/2021. It indicated a refund of $354. I updated turbotax 4 days ago, and now it shows I owe $139! This was a turbotax software mistake regarding unemployment. Please advise ASAP.

Forum|Forum|5 years ago
April 5, 2021
1 reply
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Employee

Although the IRS allows up to a $10,200 deduction from unemployment comp income, NC does not. I (just another user) am not sure what happened, but TT might have given you a similar deduction on State, and the had to reverse it. In doing so, that may have affected some of your other state deductions/credits as well.

The states still taxing unemployment benefits, despite federal relief (usatoday.com)

J

jimsaxonAuthor

Yes, that is correct. So, it was efiled with incorrect amounts, and I have not received that refund yet. Should I wait till I receive the refund then send in an amended return? What if after May 17? How do I acount for the refund already? And, can I do an amended state return through Turbotax, or not (NOrth Carolina)

Thanks!

T

ThomasM125

You do need to wait until you receive a notice from North Carolina explaining why they reduced your refund. Until you are sure what the issue is, you cannot be sure you are dealing with it properly, and if you submit an amended return before your original return is processed, it can create issues with the amended return being processed properly.

You can do the amended return through TurboTax.

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