For most eligible taxpayers, the IRS will take care of everything and there is no need to file an amended return.
The IRS will start the recalculation process with the returns filed by Americans eligible for the $10,200 unemployment compensation exclusion.
The second phase will include people who are married filing jointly and those with more complicated returns.
The only situation in which a taxpayer would need to file an amended return is if the IRS recalculation makes that person eligible for federal credits and deductions they wouldn’t have otherwise qualified for:
“For example, the IRS can adjust returns for those taxpayers who claimed the Earned Income Tax Credit (EITC) and, because the exclusion changed the income level, may now be eligible for an increase in the EITC amount which may result in a larger refund. However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits but now are eligible because the exclusion changed their income.”
The IRS recommends those taxpayers review their state returns as well.