Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Industry Discussions
- :
- Practice Advice
- :
- Should I amend clients return to add dependent even though IRS says not if there is unemployment?
Should I amend clients return to add dependent even though IRS says not if there is unemployment?
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
eaf1213
Level 4
03-23-2021
08:12 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
A client owes the IRS after filing their initial return. They filed February 14 before the unemployment change. When initially filing they were not able to claim their child but now they are able to. So I need to file an amendment to add a dependent my client didn't initially claim. This client also has unemployment that wasn't excluded on the initial return.
The IRS most recently said "As noted within the guidance, if a 2020 Form 1040 or 1040-SR return has already been filed, there is no need to file an amended return to figure the amount of unemployment compensation to exclude. The IRS will refigure the taxes using the excluded unemployment compensation amount and adjust the tax account accordingly. The IRS will send any refund amount directly to the taxpayer."
So I don't know if I should amend to add the dependent or not? The client owes and it's possible the IRS won't adjust their tax account until after taxes are due. If I amend to add the dependent, I might as well add the exclusion to?
This discussion has been locked.
No new contributions can be made. You may start a new discussion
here
3 Comments 3
dkh
Level 15
03-24-2021
11:17 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
If you are amending anyhow, yes, correct the unemployment. I'm sure IRS has been bombarded with amended returns for the unemployment. And I don't think it's written in stone that IRS is going to do the adjustments. Personally, I think they are just stalling us until after they implement the CTC advance payment system.
As a side note, I'm curious as to why the client couldn't claim their child initially but now they can. 🤔
eaf1213
Level 4
03-26-2021
08:35 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
The childs mother refused to sign the custodial release form even though it was his year to claim so he just filed without claiming the child. After filing she decided she would sign the form.
rbynaker
Level 13
03-26-2021
08:56 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
@dkh wrote:
As a side note, I'm curious as to why the client couldn't claim their child initially but now they can. 🤔
We have the real answer (where's the fun in that?) But here's a hypothetical:
"Child" age 25 lives at home, supported by Mom and makes $2K on a W-2 job and $10K on unemployment. Filed a return in February claiming self, AGI=$12K, TI = $0 but gets full RRC.
Fast forward to now. Child now meets all of the tests to be a QR of Mom (Gross income is now <$4,300).
Aren't taxes fun?!?
