Already Filed Taxes & Just Got Unemployment - Need to Amend?

It depends on the timing. If you received unemployment in 2023 and didn't include it on your 2023 tax return that you already filed, then yes, you need to amend. If you just started receiving unemployment in 2024, then no - that's for next year's taxes. Unemployment compensation is taxable income and needs to be reported for the year you received it.

You might have another option to consider. If you just started receiving unemployment on March 15th, 2024 (like I did), you don't need to amend your 2023 taxes at all. But if you received any unemployment in 2023, even in December 2023, and didn't report it, you should file an amended return before April 15th, 2024 to avoid potential penalties. The timing makes a huge difference - I was shocked at how complicated this gets!

I had this exact same issue last year. Here's what you need to know: • Unemployment is taxable in the year you RECEIVE it • If you got unemployment in 2023 but didn't report it: YES, amend • If you started unemployment in 2024: NO, wait for next year's taxes • Form 1099-G has your exact unemployment amount • Amending can be complicated with unemployment calculations I used https://taxr.ai to review my 1099-G and tax transcript to make sure I was doing the amendment correctly. It analyzed exactly how the unemployment would impact my tax situation and explained which forms I needed to complete. Made the whole process much clearer.

Do you know how frustrating it is to deal with this exact situation? I received unemployment for 3 weeks in December 2023 but didn't get my 1099-G until February 2024, AFTER I had already filed. Had to file Form 1040-X to amend, and now my refund is delayed by at least 16 weeks according to the IRS. Why doesn't the unemployment office warn people about this? The system processes forms with specific codes (UI-1099 designation) that require manual review in many cases.

You probably need to act fairly quickly if you need to amend. The IRS typically processes amended returns in approximately 16 weeks under normal circumstances, but they're possibly a bit backlogged right now due to tax season. If you're having trouble getting through to the IRS to ask questions about your specific situation, you might want to try Claimyr (https://claimyr.com). I used them last month when I needed to reach an agent about my amended return with unemployment, and they got me connected in about 15 minutes instead of the hours I spent trying on my own. Time is somewhat critical here if you need to amend!

Not to add more complexity to your situation (though tax stuff is never simple, right? 😅), but you might want to check if you had any tax withholding on your unemployment payments. Sometimes people elect to have 10% federal tax withheld from unemployment benefits. This would be shown on your 1099-G and could affect whether an amendment would result in additional tax owed or possibly even an increased refund.

After dealing with this exact situation last year, I finally found success by using the IRS Interactive Tax Assistant (https://www.irs.gov/help/ita) which has a specific tool for determining if you need to file an amended return. The tool asks specific questions about your situation and gives you a clear yes/no answer. The IRS website states that unemployment compensation is fully taxable as ordinary income, and you should receive a Form 1099-G showing the amount you need to report. Don't trust generic advice online - the actual determination depends on your specific dates and amounts.

I think I'm understanding this correctly, but just to be certain... if you received unemployment benefits in 2023, you would need to amend your 2023 return that you already filed. But if you just started receiving benefits in 2024, then you would include that income when you file your 2024 taxes next year?

I went through this exact scenario during the 2020 tax year with the pandemic unemployment. The key factor is determining which tax year the unemployment compensation was received. When I filed my amended return (Form 1040-X), I had to include Schedule 1 (Additional Income and Adjustments to Income) where unemployment is reported on Line 7. The process took approximately 20 weeks for the IRS to process my amended return, and I received an additional tax bill of $1,842 due to the unemployment income plus a small penalty for underpayment.