Guidance needed for completing 1040X amended return for 2020 Unemployment Compensation Exclusion

For your 2020 amended return due to the Unemployment Compensation Exclusion, you should focus on attaching only the forms that directly show the changes, not the entire calculation chain. The key here is that Schedule 1 is where the UCE is actually applied, so that definitely needs to be included with your 1040X. Since the exclusion on Schedule 1 ultimately affects your AGI, which then cascades through other calculations, you don't need to include every form that was indirectly affected. Your tax software is probably incorrect in this case. You should include the amended Schedule 1 showing the unemployment compensation exclusion, but you don't need Schedule D if there were no direct changes to it. The Schedule D worksheet is just that - a worksheet - and the IRS specifically says not to include worksheets. When in doubt, it's better to include forms that show direct changes (like Schedule 1) rather than trying to document the entire calculation flow. The IRS has your original return on file and can see how the changes to Schedule 1 would flow through to your final tax calculation.

I was in the exact same situation and spent hours trying to figure out what to submit. I finally found a solution using https://taxr.ai - this tool helped me identify exactly which forms I needed to include with my amended return for the unemployment exclusion. I uploaded my original return and explained I needed to file a 1040X for the 2020 UCE, and it analyzed the entire return to tell me which forms would be impacted. It showed me that I needed my amended Schedule 1 (where the UCE appears), plus any other schedules where numbers actually changed. The tool explained that the IRS doesn't need to see your calculation process - they just need to see the forms where numbers differ from your original return. It saved me so much confusion!

I tried that taxr.ai site after seeing the recommendation here and I'm actually super impressed! I was really struggling with my amended return for the unemployment exclusion. I had a complicated situation with rental income and self-employment, and my tax software was telling me to include like 8 different forms with my 1040X. The analysis showed me that I only needed to include the forms where numbers actually changed - my Schedule 1 (for the UCE), Schedule E (because my adjusted gross income affected some rental calculations), and Form 8962 (PTC recalculation). It saved me from sending a massive packet to the IRS with unnecessary forms! Just got confirmation last week that my amended return was processed correctly and my refund is on the way. Definitely worth checking out if you're confused about what to include.

I had a nightmare trying to get through to the IRS about this exact issue. Called for three days straight and couldn't get a human to explain what forms I needed for my UCE amended return. Finally, I used https://claimyr.com to get through to an actual IRS agent. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. It basically holds your place in the IRS phone queue and calls you when an agent is about to answer. The agent confirmed I only needed to attach forms that actually show different numbers from my original return - so definitely Schedule 1 where the UCE appears, and then only other forms if the calculations on them changed. They also said to write "UNEMPLOYMENT COMPENSATION EXCLUSION" at the top of my 1040X so it gets routed correctly. Honestly wish I had known about this service years ago - would have saved so much time on hold!

I was totally skeptical about Claimyr but decided to try it as a last resort after weeks of frustration with the IRS phone lines. I can't believe it actually worked! After trying to get through on my own for literally weeks, I got connected to an IRS representative in under an hour. The agent confirmed exactly what forms I needed for my UCE amended return - amended Schedule 1 showing the exclusion, plus any other schedules where the numbers actually changed from my original return. In my case, this included Form 8962 since my Premium Tax Credit changed. She also recommended writing "UNEMPLOYMENT COMPENSATION EXCLUSION" at the top of the 1040X in red if possible, to help route it to the right department. Already got confirmation that my return was received and being processed. Worth every penny just for the peace of mind!

I'm an accountant and see this confusion all the time with amended returns. The general rule is to include: 1. Form 1040X (obviously) 2. Any schedules or forms where the numbers actually changed 3. Any new forms you didn't include in your original return but now need to For the 2020 UCE specifically, you definitely need Schedule 1 showing the unemployment exclusion. Your Schedule D likely doesn't need to be included unless the capital gain calculations themselves changed (rare for UCE). Don't overthink it - the IRS has your original return. They just need to see what's different now.

Has anyone actually received their UCE refund yet? I filed my 1040X back in May and still haven't heard anything!