LenaH
Employee Tax Expert

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From your question, it sounds like you had to repay back unemployment benefits from 2021, as well as benefits from an earlier year. You cannot use the 1099-G input screen to enter a repayment that is for multiple years. 

 

First, figure out the amount you repaid in 2021 of unemployment compensation that was paid to you in 2021.

 

Next, figure out the amount you repaid in 2021 of unemployment compensation that was paid to you in prior years. Per IRS Publication 525, if you repay unemployment compensation that was included in income in an earlier year, you can deduct the amount repaid on Schedule A (Line 16), as long as you itemize and the repayment amount is over $3,000. If your repayment is less than $3,000 and you are repaying it in a subsequent year, there is no tax benefit available. 

 

Then, please follow the instructions below:

  1. Open your return.
  2. Search 1099-G with the magnifying glass tool.
  3. Answer Yes to the question Were you required to repay unemployment benefits (uncommon)?
  4. Answer Yes to the question Did you pay back any government unemployment from 2020 or earlier?
  5. Edit your 1099-G and in the box asking 2021 benefits repaid, Don't enter benefits repaid for 2020 or earlier. Enter only the amount of benefits received and repaid both in 2021.
  6. Continue. 
  7. On the page How much of your government unemployment did you repay?, enter only the amount of repaid benefits that you received in 2020 or earlier.

For more information, please see IRS Publication 525 

 

@nishamillender24

 

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