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Unemployment Income... ProSeries automatically corrected return after it was e-filed

Level 3

Clients had federal tax liability of $2,300+ due to unemployment income and return e-filed Feb.16, 2021 (prior to unemployment income exemption).  Just looked at return and ProSeries automatically corrected client return to adjust for the unemployment exemption showing "refund due of $160."  My "hard copy" now differs from my ProSeries record.

Also looking for guidance on tax liability payment... should client pay $2,300+ by May 17?  Or wait for IRS to correct original and issue client refund based on IRS (yikes!) correction?


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2 Replies 2
Level 15

How do your clients feel about getting increasingly threatening notices from IRS all summer?

(And it sounds like this is a joint return, which are the last that will be reviewed.)

Some are waiting for Commissioner Rettig to come down from the mountain with "guidance" on tablets telling us whether to amend returns for this new exclusion, in some cases like this one, where a balance due turns into a refund.    I would file an amended return, now.  Will you have to do that for the state, anyway?  

Level 3

Appreciate your response.

State (NJ) return not impacted by unemployment income since it is non-taxable... but that could change in a heartbeat.

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