Pacun Posted March 23, 2021 Report Posted March 23, 2021 Here I go again with scenarios: Scenario 1: I efiled in Feb, 2021 a return of a single mother with one child age 5. I entered W2 income =15K Unemployment = $20K. No IEC form was filed because she earned too much. it is April and the IRS sent this person an extra check for $1,020 because unemployment is not taxable. It is time for me to amend and claim EIC. I guess I will have to be careful to enter those $1,020 on the 1040X as received. Scenario 2: Similar case, except this taxpayer: I entered W2 income =15K Unemployment = $16K EIC was claimed on this return and all forms were filed out. I wonder if the IRS will send the $1,020 check to this person and the additional EIC without any intervention from my part. Scenario 3: Same situation as above with this income: I entered W2 income =3K Unemployment = $10K EIC was claimed on this return and all forms were filed out. In this case, the parent got $1,400 refundable additional child tax credit. Will the IRS send a bill to this person? Quote
Possi Posted March 24, 2021 Report Posted March 24, 2021 Have you already filed all of these returns? If so, I'm anxious to see what happens. No idea. Certainly nobody considered the ripple effect of this circus. More certainly nobody considered US. 1 Quote
Catherine Posted March 26, 2021 Report Posted March 26, 2021 "No one considered" in large part because those making the laws have NO IDEA how the income tax system works - they're lawyers. Not real people. Certainly not accountants! 2 1 Quote
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