Will the IRS correct the non taxable unemployment in a community property state to $20,400?

Forum|Forum|4 years ago
October 8, 2021
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Lacerte Tax

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BobKamman

Level 15

Q4. Do I need to file an amended return if I live in a community property state and did not enter the correct exclusion amount on Schedule 1, line 8? (added July 7, 2021)

A4. If you entered an exclusion amount less than what it should have been based on FAQ I'm married and live in a community property state. Am I eligible for the exclusion?, you do not need to file an amended return. The IRS will recalculate your exclusion amount following this guidance and adjust your return for the difference. These corrections are currently planned for later this summer. You will receive a notice regarding the correction within 30 days of your account being adjusted.

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs-topic-d-amended-return-form-1040-x

IRS has gone silent since July on the progress they are making on these automatic amended returns, but they said they were going to do the MFJ returns last. There's really no way for them to know whether the unemployment compensation was community income, but they're making their best guess.

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