Question

Need help

Forum|Forum|4 years ago
May 3, 2021
1 reply
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I am self employed and I've already filed my returns. But now there are new tax reliefs for unemployment benefits. What do I do?

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CatinaT1

There is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-may

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W

wesleywoodallAuthor

Will the IRS or turbotax let me know the difference in amount through email or anything?

AmyC

The IRS will give you money. If you want to know ahead of time, save your tax return. Then click add a state to get you into your tax return. Look at the new amount and compare it to the original. Before you do that you may need to amend your state return. See Do I need to amend my state return to update my unemployment?

If your tax return contains unemployment and a credit, the IRS will adjust both. See IRS to recalculate taxes on unemployment benefits; refunds to start in May If your return has unemployment but you now qualify for an additional credit, then you should amend your return.

Here are some credits for which you may now qualify:

Once your original return is accepted and the finances are settled, you can file an amended return.

Save a copy of the original return before doing an amended return. See:
- how to file an amended return. The program will remove the $10,200 of unemployment and change things for you.
- I need to amend my state return.
- Can I e-file my amended state return?
- Can I e-file my 1040X to amend my return?
Track amended return status online. Taxpayers can track the status of their amended tax return in English and Spanish using Where’s My Amended Return? Amended returns take up to 16 weeks to process and up to three weeks from the date of mailing to show up in the system.