Do I Need to Amend or Not My 2020 Tax Return?
IRS updates on November 12, 2021
Short answer is “It depends”:
You received unemployment benefits and filed your tax return before the law was passed to exclude $10,200 of unemployment income from your federal tax. If you are eligible to exclude unemployment income: you
➨ do not need to amend: to get recovery rebate, earned income tax credit (EITC) with no qualifying child. The IRS will make adjustments.
➨ do not need to amend: to get child tax credit (CTC), additional child tax credit (ACTC). You may have received the IRS notice CP 08 or CP09 stating that you are eligible to receive these credits. If you do get the notice, reply to these stating that you are eligible to receive the credits.
➨ do need to amend: if you are eligible to exclude $10,200 unemployment and doing so makes you eligible for a credit, that was not originally claimed on the tax return, then you need to file an amended return to claim the new credit.
Example: Before unemployment exclusion your income was high and you could not get CTC, EITC or education credit. After unemployment exclusion you are in the range to get these benefits.
➨ do need to amend: if you did not receive the notice and you you believe you are in range to get credit, you might have to amend your tax returns.
Sample IRS Notice CP 09: Upper right corner of this sample letter tells you that it is CP 09 indicated by the arrow.
Purpose of this letter is to inform the taxpayer that they are eligible to a refund from the IRS.
Sample IRS Notice CP 74:
Purpose of this letter is to inform the taxpayer that the IRS have made adjustment to their EIC already and they do not need to do anything.
Even if you do not receive the notice, you can amend your tax returns to get the refund due to you.
If you or someone you know have additional questions regarding if they need to amended their tax return or not help to amending their tax, please give me a call. I can also help with these additional issues like filing past due taxes, tax payments, levies, liens, or other tax related matters, give me a call or send me a message.
Many tax preparers and accounting professionals are extremely busy due to the complexity of tax regulations brought about by the COVID-19 pandemic and the IRS collection efforts to contact taxpayers with unfiled tax returns. If you or somebody else you know are having IRS issues please feel free to contact me at firstname.lastname@example.org or call me 301-461-2022. The IRS doesn't like to be ignored. Be proactive.
Enrolled agents are federal tax practitioners licensed by the Treasury Department.