As such, your federal AGI may have changed because of the APRA unemployment income changes. Some state tax returns use the federal tax return Adjusted Gross Income (AGI is listed on Form 1040 Line 11) to calculate your state income tax. If a federal or state amendment is needed, it will need to be filled in manually and mailed in. The time to prepare any amendments for 2020 has passed at the bottom of this page is a list that you should file a tax amendment for details on your state(s) tax amendment process. However, the IRS confirmed that, for single taxpayers with no dependents in this situation only, an amendment is not needed and they will make this adjustment. If you did not claim the EITC or Earned Income Tax Credit on your originally e-Filed IRS return (see Form 1040 Line 27), but now as a result of the lowered 2020 AGI, you do become eligible for the EITC, you should file an IRS tax amendment claiming the EITC and state tax amendment(s) to claim a similar or other state credits. The instructions below are for taxpayers that filed their tax return on or before March 15, 2021. State specific tax amendment instructions are listed below. State Tax Return(s): The change of your 2020 IRS tax return AGI - adjusted gross income - should be reflected on your state tax return(s), even though it might not necessarily change the tax return results of your 2020 state tax return(s).If you have received this and did not get all of what you are entitled to, you should file an amendment. However, we suggest not to file an amendment until you have received the IRS supplemental or plus-up payment and the letter from the IRS. Secondly, in order to claim these credits, you will have to file an IRS and/or state tax amendment. First, you will need to find out if you indeed qualify or not. As a result, you might now qualify for additional tax credits. These would be credits that you did not qualify for based on the original 2020 Tax Return prior to March 15, 2020. Due to the 2020 Tax Return AGI change, you might now qualify for one or more tax credits, like the Earned Income Credit.The IRS did not provide a tool or method to track payment status of these refunds however, they may be able to provide details when you call.Ī federal tax amendment is required for the following: The IRS had started to direct bank deposit or mail out bank checks in late May of 2021 for this supplemental or plus-up payment to respective taxpayers with filed their 2020 Return. If you do not receive a refund when you are owed one for any reason, contact the IRS they are supposed to be able to provide guidance on receiving this refund and should assist. The IRS will adjust this and issue the payment. An amendment is not required when a taxpayer's claimed tax credit change and result in a higher/lower tax refund. If only one spouse collected, then the exclusion was $10,200.Ī taxpayer federal tax amendment is not required for when, as a result of this adjustment, the 2020 federal AGI (Adjusted Gross Income) changed. Important updates on the Unemployment Compensation Exclusion.ĭue to the changes from the American Rescue Plan Act (ARPA), the IRS excluded up to $10,200 of Unemployment Income or $20,400 if Married Filing Joint Return and each spouse received unemployment compensation during 2020.If you filed on or before March 15, 2021, follow the instructions below.If you file on or after March 16, 2021, you don't have to do anything you do NOT have to file a tax amendment.The Unemployment Compensation Exclusion (UCE) and your 2020 Tax Return: The following information applies to 2020 Returns only.
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