Are you amending MD returns because of unemployment?

[Pacun]

Client filed early and her unemployment was taxed by MD.  It is my understanding that MD said that they were going to adjust automatically and people were going to receive the extra refund automatically.  Client called MD and was told to amend. This will be very interesting because as soon as you open the return, the numbers will change and there will be no way to open the form the way you sent it.  A lot of overriding will have to be done and then we will have to amend the return. 

Have you heard that MD is requiring amendments because of unemployment if refund has been issued?

Any work arounds during the amendments will be welcome.

 

[Sara EA]

CT just announced that returns with unemployment filed before the software updates will have to be amended even if the IRS auto-corrects the federal.  CT starts with federal AGI and does not have a separate line for unemployment benefits, so there is no way for the state to know what went into that AGI number.  If MD and other states do the same, there's a whole lot of amending going to be happening.  And we thought that this year we might actually get some time off before extension season hits!  Our software also will update the minute we open the return, so the "originally reported" numbers will all have to be entered by hand (and double checked of course).  We are planning to charge $75-100 per amendment.  If federal amendments have to be done because the client is now eligible for a credit or deduction that wasn't there before, we'll charge for those too.