Get your taxes done using TurboTax

You will want to report the repayments in the year you repaid.  In TurboTax, when you enter the 1099-G, you can indicate the repayment. (Look for the screens below.)  This will reduce the amount of taxable income for you.  The income from the federal tax return will be used for New Jersey so no additional information is needed in the state section of TurboTax.