LogFAQs > #961523074

Well I can't remember if that was red's situation anymore because it's been awhile.

But that is how the automatic Unemployment (UE) changes worked.

It was most commonly an issue in conjunction with the Earned Income Credit (EIC). If his original total income, counting all of the UE benefits, put him out of the range of claiming EIC, it would not have been on his original return. And if removing the first 10,200 of UE benefits as income put him below the threshold to claim EIC then it's something that would not automatically be added.

The automatic UE changes:
-Looked for accounts with original 2020 tax returns that included UE Income.
-Compared the UE claimed to the income documentation that was reported to us by your state's UE office.
-If the entire UE was claimed, we removed the first 10,200 from the return. (people who didn't file until after march were able to include the reduction themselves with their original return)
-After removing that income tax is recalculated, and the various credits already claimed were recalculated.
-Credits not yet claimed were not calculated in this change.

This is possibly because total income is only one of several things that could possibly disqualify someone from claiming a credit so we would still need the specific person to verify that they meet all relevant requirements.

But for a variety of reasons amended returns have become backed up to the point that they are averaging 7+ months rather than the previous "16 weeks or less"