Amending returns that have been locked?

[ritastone001]

Unemployment change now allows EIC for clients. Locked returns for clients who had already filed before unemployment tax law change. Question is when I go to amend the return, when unlocking the file new information immediately flows to the return. When preparing the 1040X the correct info will need to be entered manually?  Or is there a way to stop corrections when opening the file. I do have paper backups for these files but of course the first one I look at will have to be amended.

[Just-Lisa-Now- · Accepted solution]

Going to take some adjusting entries to make the original look like the original that was filed...add back the UCE then activate the 1040X, then take the add back away.

[ritastone001]

Thank you Lisa. Just trying to make this as painless as possible!

[User_61]

IRS to recalculate taxes on unemployment benefits; refunds to start in May

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.

IR-2021-71, March 31, 2021

[dkh]

IRS will adjust to increase EIC if it was on original return but will not adjust to add EIC.  Therefore, it may be necessary to file amended returns.