ATLANTA — ATLANTA – Many taxpayers are tempted to file an amended return after a change in the law that could benefit them, but financial experts say be patient.
Congress’ decision not to tax a portion of unemployment checks in 2020 came after 45-million people had already filed their returns. Normally, that would mean filing an amended return. Not this time.
Here’s why.
If you made less than $150 thousand in 2020 and collected unemployment, you qualify for the break.
The IRS will not tax up to $10,200 in unemployment benefits. It could impact refunds for thousands and perhaps even millions of taxpayers.
“For some, it might be $100 difference for others $150,” said financial expert Andrew Poulos.
If you filed a return before the tax break was enacted, our financial experts say be patient with the IRS.
“They’re going to make the adjustments themselves in the system versus having to deal with all of these thousands or potentially millions of amended tax returns,” said financial expert Jini Thornton
The IRS is busy issuing stimulus checks while dealing with a backlog of returns from 2019. Amended returns from people who’ve already filed will further overwhelm an overstressed system.
“Do not complicate things,” stated Poulos. “The IRS has said they’ll sort it out on their end. If you file an amended return that’s only going to slow down the processing of your tax return and cause more delays.”
If you haven’t filed, the IRS will release a worksheet for paper filers while companies update their software to reflect the change so you can file online.
If you’ve already received a return and it doesn’t reflect the change our experts say you should receive another one.