I received an IRS notice that the reported unemployment payment info does not match my 2016 tax return and that I may need to file an amended return.
The 1099-G shows that some 2016 benefits were repaid.
Turbo tax subtracted the repaid amount so that 1040 line 19 is unemployment compensation is less the repaid benefits, as expected.
I'm guessing the IRS is comparing the full amount of compensation on line 19, and not the reduced amount due to repaid benefits.
Is my return actually incorrect and do I need to file an amended return?
By the way, the TurboTax Printed or PDF of the 1040 scrunches up the "repaid amount" to the left of line 19 so as to be almost unreadable. It is perfectly readable in the TT Forms view. Not that the IRS would "see" that on paper when electronically filed.
There is no provision in the AnswerXchange Comment page to upload an image of the scrunched text.