KrisD15
Expert Alumni

Deductions & credits

When you go to Step-By-Step, the negative amount does show on that screen under Unemployment, but that is just showing YOU that your income was that much less because of the repayment. 

The negative number under Unemployment does not flow to your return. 

 

You need to look at Schedule A line 16 for that number (as a positive number) 

 

You have two options, 

1. Enter the amount you paid back as an Itemized Deduction. In order to do this, you must Itemize Deductions and file Schedule A with your tax return. 

2. Figure your 2021 tax with the lesser amount of income (your 2021 income less what you paid back) and take the difference on your 2022 tax return.

 

If you are able to Itemize, the repayment will be on Schedule A line 16. 

 

If you are not itemizing, you need to follow that second set of instructions. The second option involves you using your 2021 tax file, editing your wages and then taking the difference in your tax liability. Enter that difference on your 2022 1040 Worksheet which you can only get to using TurboTax Desktop. 

The second option will not be what you paid back, it will be what you paid in tax for the income you paid back. You get the tax back. 

 

Instructions 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"