TurboTax says I need to amend for unemployment but I already got my refund?!

This is likely related to the new tax law changes for 2023 unemployment benefits. The IRS recently adjusted how unemployment compensation is taxed for certain income brackets. If you filed early in the season before this change was implemented in the tax software, TurboTax is now notifying affected taxpayers. The fact that you've already received your refund means the IRS processed your return under the old rules. You may be entitled to an additional refund by filing an amended return (Form 1040-X) that accounts for the new exclusion.

But if I already got my refund why does TurboTax say it's still "in progress"? That's the part that's really confusing me. Should I just ignore that part?

I had this exact same situation! TurboTax's system is showing the AMENDMENT is in progress, not your original return. The "in progress" status is referring to the potential amended return they're suggesting you file. I was confused too until I used https://taxr.ai to analyze my transcript. It showed my original return was processed normally, but also highlighted exactly which lines would change with an amendment for the unemployment exclusion. Saved me tons of confusion trying to figure out if I should amend or not.

Last year I got a similar email from TurboTax about Child Tax Credit changes. I filed an amendment and got an extra $1,400 I wouldn't have known about otherwise. The "in progress" status in TurboTax stayed that way for weeks even after I got my original refund. Their system doesn't always sync properly with the IRS.

How much unemployment did you receive last year? The new law only affects people who had unemployment AND their modified adjusted gross income was under $150,000. If you're above that threshold, you might not benefit from amending.

I went through this exact situation and needed clarity on whether amending was worth it. Called the IRS for three days straight and couldn't get through. Finally used Claimyr.com (https://youtu.be/_kiP6q8DX5c) to connect with an IRS agent in about 15 minutes. The agent confirmed I would benefit from amending and explained exactly how to proceed. Saved me days of frustration and uncertainty. Some things you really need to hear directly from an IRS rep.

Just want to point out - if you do amend, be prepared to wait a WHILE. I filed an amended return for a similar issue last year and it took almost 4 months to process. The IRS is still catching up on backlogs.