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Level 2
April 8, 2021
Solved

EIC due to UI Exclusion

  • April 8, 2021
  • 2 replies
  • 32 views

Do I need to amend the tax return if the client qualifies for EIC due to Unemployment Income Exclusion?

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Best answer by IRonMaN

Eventually you will.

2 replies

IRonMaN
IRonMaNAnswer
Level 15
April 8, 2021

Eventually you will.

Slava Ukraini!
BobKamman
Level 15
April 8, 2021

Yes.

"For example, the IRS can adjust returns for taxpayers who claimed the earned income tax credit and, because the exclusion changed their income level, may now be eligible for an increase in the EITC amount.

However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits but are now eligible to claim them following the change in the tax law."

https://www.irs.gov/newsroom/irs-will-recalculate-taxes-on-2020-unemployment-benefits-and-start-issuing-refunds-in-may