DawnC
Expert Alumni

Retirement tax questions

The amount you paid back affects your 2020 tax bill, not your 2021 tax bill - that is why you don't see an adjustment on your 2021 return.   There was a $10,200 unemployment exclusion last year, so you probably did not pay any tax on that income.   Did you repay more than $10,200 (or the amount you paid tax on) of 2020 unemployment in 2021?  

 

A Claim of Right Repayment is a deduction you can take in the current tax year if you’re required to pay back income in excess of $3,000 from a previous tax year that you thought you could keep.   You reported and paid taxes on the money, not knowing you’d have to pay it back.  Because of the one-time UE exclusion last year, you probably did not pay tax on the income and in that case, you do not need to do anything with it this year.  

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