If your AGI is less than $150,000 and you do as I advised your problem goes away. If your AGI is over $150,000 and your tax is increased I would then go to Schedule 1 , Line 8 and add as an explanation "Identity Theft Erroneous 1099G" and put in a negative equal to the UC on your 1099G. The big issue in any case is was there tax withheld form the UC? I assume not since a crook wouldn't want to reduce his fraudulent income by having tax withheld. If it was withheld I would not use the tax when inputting the 1099 G. The IRS might send you a notice giving you the benefit for the tax. Then you can explain why the income wasn't yours. I believe that these crooks could earn a legitimate living if they used the talents necessary to steal your wife's identity and get UC in legal employment.
