Yes. You will need to report in TurboTax the Unemployment benefit amounts on the 1099G received. If it is later determined you have to pay the amounts back:
- If the repayment is $3,000 or less, then no deduction is allowed
- If the repayment is more than $3,000, then you can claim a deduction on Schedule A, Line 16 or
- Claim a tax credit by re-calculating the tax form from the earlier year without the income that was later repaid.
I have heard and read many states are not requiring the repayment of the Federal Pandemic Unemployment Compensation benefits paid during 2020.
