You enter the unemployment compensation on your federal tax return. The federal tax data flows to the state tax return. If your state taxes unemployment compensation it will be included on your state tax return. If your state does not tax unemployment compensation it will not be included on your state tax return.
To enter unemployment compensation
Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Under Unemployment
On Unemployment and Paid Family Leave, click the start or update button
Or enter unemployment in the Search box located in the upper right of the program screen. Click on Jump to unemployment
Donna,
Thanks for the quick response. The 1099-G is not for unemployment. I believe it's based on my state refund from the last year. Any thoughts?
Since there is an amount in box1 of the Form 1099-G then the state of Virginia has said that the income received by you was unemployment compensation. If this is incorrect then you need to contact your state and get a corrected Form 1099-G so that the income is reported in box 2 as a state tax refund.
A copy of the Form 1099-G is sent to the IRS so they will expect to see this income reported on your federal tax return as unemployment compensation on Schedule 1 Line 7 and on Form 1040 Line 8.