Refund amount changes

[slekutis]

When I filed my federal taxes in late March, 2021, TurboTax said I owed $755. I selected to pay by debit and scheduled the withdrawal for 5/14/2021 and e-filed my return. Today (4/13/2021) I launched TurboTax and allowed it to update. When I go into my return, it says I have a federal refund due of $3352. I understand this could be due to changes to  how unemployment wages are taxed, but what should I do? Since I'm eligible for a refund, do I file an amended return? Since the debit for my expected payment hasn't occurred yet, do I cancel it? If so, how?

[MaryK4]

The IRS has said NOT to amend if your only change is the Unemployment income- it will recalculate the changes and send you a refund.

To be safe, call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling.

• Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date.

[slekutis]

How do I know that the change in my payment/refund was due to unemployment income? I made no changes to my return. The difference occurred without any input from me.

[JeanneLO]

They system automatically updated if you had unemployment income for tax year 2020. You can review your tax return to see the changes by following the steps below. Just make sure you don't change anything. 

To go back into your current year tax return follow these steps:

1. Sign into TurboTax if you haven't already.
2. On the Tax Home screen, scroll down and select Add a State (don't worry, we're not adding a state) to access your tax forms and worksheets.

[slekutis]

Sign in? As in online? I used a local install of Turbotax Deluxe to prepare my taxes. I'm confused as to how I do this. When I sign in online I get a message at the bottom of the page that I haven't filed my taxes yet. I know that's incorrect.

[DoninGA]

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@slekutis wrote:

Sign in? As in online? I used a local install of Turbotax Deluxe to prepare my taxes. I'm confused as to how I do this. When I sign in online I get a message at the bottom of the page that I haven't filed my taxes yet. I know that's incorrect.

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If you have your Updater preferences set to automatic then the update that was released on 03/26/2021 was installed on your TurboTax desktop program.

The exclusion is reported on Schedule 1 Line 8 as a negative number.  The unemployment compensation received is on Line 7 of Schedule 1.  The result flows to Form 1040 Line 8.

Click on Forms and when in Forms mode click on Schedule 1 on the left side of the screen to open the schedule.

[slekutis]

I printed off all my forms when I initially filed and had to pay $755.0 The amounts I see when I look now are exactly the same as they were when I filed. Consequently I still have no explanation for the swing from owing $755 to getting a refund of $3352. This is becoming very frustrating.

Having said that, I see a discrepancy between the forms I printed before the update, and the forms I see when I open my return.

First, there is no Schedule 2 in the forms list, however, one printed when I first filed. On my initially filed forms, the amount on line 29 of schedule 2 got transferred to line form 1040-SR, line 17. On the post-update forms, form 8962 shows an amount on line 29, but there is no Schedule 2, and the amount from line 29 is NOT transferred to line 17 of my 1040-SR. 

Please help me sort out this confusion. I am concerned that TurboTax made an error which I will ultimately have to pay for.  In 16+ years of using TurboTax I have never experienced anything like this.

If a real-time conversation is necessary to resolve my question, I am completely open to it. HELP!