topic State UI insurance issued incorrect 1099-G and refuses to correct. in Get your taxes done using TurboTax

State UI insurance issued incorrect 1099-G and refuses to correct.

Wyreth — Tue, 16 Mar 2021 23:17:45 GMT

Being a freelancer, I got caught between the PUA unemployment program and the standard unemployment program in Nevada. Initially I was payed under PUA because my W-2 income did not meet the standard unemployment threshold. So I was initially paid under the PUA (cares act) program. Later I was moved to standard unemployment, they backdated my claim, and issued a determination that I had to pay back the amount I was paid under PUA.

However, I was issued a 1099-G from the PUA program with the amount I had to pay back listed as income. When I called unemployment to have this corrected, they said: We paid it to you, it's income. Doesn't matter if you had to pay it back. *click*

When I called the IRS to find out what to do about this, their response was: well because it's the program for your self employment, we have no way to help you.

What do I do?

Re: State UI insurance issued incorrect 1099-G and refuses to correct.

JoannaB2 — Tue, 16 Mar 2021 23:42:42 GMT

Under American Rescue Plan signed in 3/11/2021, the first $10,200 of unemployment payments are excluded from federal taxation with modified AGI under $150,000 for married couple. If you’ve already filed your 2020, don't do anything as the IRS will provide guidelines soon. If not, click here.

Re: State UI insurance issued incorrect 1099-G and refuses to correct.

Wyreth — Tue, 16 Mar 2021 23:45:07 GMT

that does not help at all.

I had 25k income from standard UI, Then 15k from PUA that I had to pay back. So while cool, the exclusion is meaningless in regards to this issue.

Re: State UI insurance issued incorrect 1099-G and refuses to correct.

MaryM428 — Wed, 17 Mar 2021 01:00:06 GMT

When you enter your 1099-G, fill in the amount that you repaid. It will be under Box 1 on the TurboTax screen.

That will cancel out the unemployment and you will not be taxed on it.

Do I have to pay taxes on unemployment?