I already filed my taxes for 2024 but completely forgot to include unemployment income

So I was on unemployment for about 4 months last year after my company downsized. Got back on my feet with a new job by September, and when my W-2 arrived in January, I was so excited to file early and get my refund that I completely blanked on the unemployment income. I just realized yesterday that I never included any of my unemployment compensation on my tax return. Both my federal and state returns have already been processed and accepted. I've received my federal refund (about $1,890), but my state refund of around $430 hasn't hit my account yet. I'm really freaking out about this mistake. Do I need to file an amended return? Will I get in trouble with the IRS? Should I wait until I receive my state refund before doing anything? I'm not even sure how much tax I would owe on the unemployment income since I had some withheld, but definitely not enough. Really appreciate any advice on how to handle this situation. I've never had to amend a return before and I'm pretty anxious about the whole thing.

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20 comments

Ethan Scott

•8M

Don't panic! This happens more often than you think. You'll need to file an amended return (Form 1040-X) to report the unemployment income you forgot to include. The good news is that you caught this yourself rather than waiting for the IRS to send you a notice about it. Make sure you have your Form 1099-G from the unemployment office which shows how much you received and any withholding. You'll use this information along with your original tax return to complete the amendment. The sooner you file the amendment, the less interest and potential penalties you'll accrue on any additional taxes owed. For your state return, you'll likely need to file a state amendment as well. Each state has different forms and procedures for this.

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Ethan Scott

•8M

You don't need to wait for your state refund before filing the amendment, but it might be simpler from a financial perspective if you do. If you amend before receiving your state refund, the state might hold the original refund until they process your amendment. Whether you'll owe more taxes depends on how much unemployment you received and how much was withheld. Unemployment compensation is taxable income, and often the default withholding isn't enough to cover the full tax liability. You'll need to compare what additional tax is generated by adding this income versus what was already withheld from your unemployment payments.

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Nathaniel Stewart

•8M

I went through almost the exact same situation last year! I completely forgot about 3 months of unemployment when I filed and only realized after I got my refunds. I was super stressed about it until I found taxr.ai (https://taxr.ai) which helped me figure out the exact impact of my missing income. I uploaded my 1099-G and my original return, and it immediately showed me how much additional tax I would owe and generated the amendment forms I needed. The whole process took like 20 minutes instead of the hours I was expecting to spend on it. It even explained exactly what lines changed on my tax return and why.

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Nathaniel Stewart

•8M

Yes, it handles state amendments too! It automatically detected which state I needed to file in and prepared both the federal and state amendment forms. Saved me a ton of time trying to figure out my state's specific requirements. For your question about accuracy, it actually shows you a side-by-side comparison of your original return and what changes with the amendment. It breaks down exactly how adding the unemployment income changes your AGI, taxable income, and tax liability. I double-checked the math myself just to be sure, and everything was spot on.

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Riya Sharma

•8M

I just tried taxr.ai after seeing the recommendation here and wow - it was exactly what I needed! I was in the same boat with forgotten unemployment income and was stressing about how to handle it. The tool showed me I only owed about $340 more in federal taxes after accounting for the withholding that was already on my unemployment. The step-by-step instructions for filing the amendment were super clear, and I was able to print out everything I needed to mail in. It even gave me a deadline calculator so I know when I need to pay by to avoid extra penalties. Such a relief to have this taken care of properly!

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Millie Long

•8M

If you're having trouble getting answers from the IRS about your amended return, you should try Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS about my amended return last year, just hitting busy signals or getting disconnected. Claimyr got me connected to an actual IRS agent in about 15 minutes instead of the hours I was wasting on hold. They have this system that basically waits on hold for you and calls when an agent is available. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was actually super helpful and walked me through exactly what I needed to do with my amended return and how to minimize penalties.

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Millie Long

•8M

It doesn't get you through faster than anyone else in the queue - it just waits in the queue for you so you don't have to sit there listening to hold music for hours. Their system monitors the call and alerts you when a human actually answers. It's not someone calling on your behalf at all. You're the one who talks directly to the IRS agent when they connect. The service just handles the waiting part, which is what makes it so useful. I was able to go about my day instead of being tethered to my phone, and when an agent finally answered (about 2.5 hours later), I got a call to connect me.

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Debra Bai

•8M

I have to apologize for my skepticism about Claimyr. I tried it yesterday after posting here, and it actually worked exactly as described. I've been trying to reach the IRS for 3 weeks about my amended return with no luck. Using the service, I got connected to an agent after about 3 hours (which is still crazy, but at least I wasn't personally sitting on hold). The agent confirmed my amended return was received and explained the current processing timeline. She also gave me specific instructions on how to handle my state amendment, which was incredibly helpful. For anyone dealing with amended returns due to forgotten income or other issues, being able to actually talk to someone at the IRS makes the whole process much less stressful.

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Gabriel Freeman

•8M

Make sure to file that amendment ASAP! I made a similar mistake a few years ago, and because I waited too long (almost 8 months), I ended up with a pretty big penalty and interest payment. The IRS eventually caught it through their automated matching system when they received my 1099-G. If you file the amendment before they send you a notice, it looks much better and shows good faith on your part. Also, the interest continues to accrue on any unpaid tax, so the sooner you pay, the less extra you'll owe.

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Gabriel Freeman

•8M

My amendment took about 4 months to process, but this was pre-pandemic so things were running more smoothly then. From what I've heard from friends who've amended recently, you should expect at least 6-8 months for processing right now. The important thing to remember is that even if processing takes forever, the IRS considers your amendment filed as of the date they receive it. So filing sooner still stops additional interest from accruing once you pay any tax due, even if they don't get around to processing it for months.

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Ellie Kim

•5M

I'm dealing with almost the exact same situation right now! I forgot to include about 3 months of unemployment compensation when I filed in February. Just got my 1099-G in the mail last week and realized my mistake. I've been putting off handling this because I'm terrified of dealing with the IRS, but reading through all these responses is really helpful. It sounds like filing an amended return is pretty standard and not as scary as I thought it would be. One question - if I already received my federal refund but haven't gotten my state refund yet, should I contact the state to let them know an amendment is coming? Or just file the state amendment and let them figure it out? I'm in California if that makes a difference. Thanks everyone for sharing your experiences - it's really reassuring to know I'm not the only one who made this mistake!

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