1) Is it true that MS can't get back the federal tax paid on my behalf to the IRS since I was paid by mistake and 100% of what I was paid in unemployment was involved. This involves the $600/week pandemic money too, not just my state unemployment amount. YES
2) What do I do for taxes next year if I can't get that IRS tax money back yet had to pay the gross back to MS (so I will have, in the end, $353 that MS paid to the IRS with no unemployment income from MS)? I read that I will have to claim as income the MS money I received regardless of the fact that I had to pay it back; that the only was I can subtract the money I paid back is as an itemized deduction. That can't possibly correct. Is it? Since I won't be able to itemize that won't work. You file a resident MS return to get a refund of MS taxes withheld in error.
3) Will MS issue me a form for how much I paid to the IRS even though I now have no unemployment money paid to me in MS? Yes they will ... you may need to download it online.
4) Will they issue me a form stating that I had zero unemployment money received from them in the end? I can't get anyone at MS unemployment on the phone who knows the answer to that. Yes they must.
5) Since it is unlikely that I will even owe Federal taxes (I am having FL , the state I was supposed to get my unemployment from, withhold money too just in case I finally get a job before the year is out) will I get ALL of the FL and MS federal tax money paid into the system back (presuming I owe no taxes)? Any excess withholdings can and will be refunded ... that is the whole idea behind filing an income tax return.
6) How do I list the unemployment money received and then had to pay back on a tax form? Do I even have to list it since I had to pay it all back so 100% of it was an overpayment? In the program you will be able to indicate the amount repaid so it nets out properly ... follow the screen instructions carefully.
7) Is turbo tax even set up to deal with a situation like this (please tell me yes!!!) or will I have to file by hand to "get it right"? It is ... READ all the screens as you go.
