Unemployment

[YLC]

I understand that the IRS is going to calculate refunds due taxpayers who already filed reporting the full amount of unemployment earnings but we are responsible for amending the state returns?  I already filed a number of returns that I will need to amend so this is a frustrating and needless to say, time consuming endeavor!

[dascpa]

Take your grievance up with each state legislature.  Just chalk it up to a f--ked up tax season in multiple aspects.

[Terry53029 · Accepted solution]

Don't forget the IRS is only redoing the unemployment. If changing the AGI affects credits, then you have to amend

[garman22]

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@Terry53029 wrote:

Don't forget the IRS is only redoing the unemployment. If changing the AGI affects credits, then you have to amend

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Oh Joy......I hadnt considered that. 

[BobKamman]

You are allowed to charge a fee.  

[TAXOH]

That is only for credits that weren't on the return before.  

When to file an amended return

Taxpayers may need to file an amended return if the tax break makes them newly eligible for additional federal credits and deductions that weren’t already included on the original tax return, the IRS said.

For example, the unemployment tax break may make some people newly eligible for the Earned Income Tax Credit. Taxpayers who didn’t claim the credit on their initial return must file an amended return to get it. They may want to review their state tax returns, as well, the IRS said.

People who’d claimed a tax credit or deduction on their initial federal return but are now eligible for a larger tax break due to the unemployment waiver don’t have to file an amended return — the IRS can adjust it for them.

[YLC]

Are you saying that the IRS is not figuring out what is due back to the client regarding unemployment?  That they are only doing that if other credits were affected?  I have clients whose AGI included unemployment so are due refunds; I thought the IRS was handling that part on their own without me providing an amendment?  I'm confused.

[YLC]

I just read that the IRS will take care of those that already filed unemployment and will process a refund accordingly; if a credit, such as EIC, is also affected, then the IRS requires an amendment.  Not the other way around.

[YLC]

I read your reply wrong; you are correct, thanks.

[YLC]

So if the amount of social security taxed will change an amendment will be needed?

[TAXOH]

unemployment exclusion and social security - Intuit Accountants Community

[Bsch4477]

The taxable amount of social security is not affected by the unemployment income deduction. That was part of the law. 

[YLC]

Good, thanks

[YLC]

I am planning on it!