Paying unemployment benefits

Forum|Forum|5 years ago
January 28, 2021
1 reply
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My wife received unemployment benefits from the state of Illinois (taxes deducted from payment). We were asked to pay back the full amount including the deducted taxes, which we did, but what happens to the taxes that we paid? Should we receive some tax document from IRS?

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Best answer by DawnC

They are required to give you the form or make it available online by Jan 31 as they withheld taxes from your payment. There should be some kind of documentation on the website now that will allow you to gather the information you need to get credit for the taxes withheld. The IRS does not start accepting returns until Feb 12th. If you don't get the document, look in the payment history on their website. Even though you returned the money, they should still show the payments with the amounts withheld for income taxes. As long as you have the amounts, you will be able to claim the credit for the taxes paid, even if you don't get the 1099-G.

MayaD

Alumni - Intuit

Enter your 1099-G form, the amount that you paid back and the taxes withheld in TurboTax. Since you paid back all the unemployment compensation, your refund will increase by the amount of taxes withheld. If you have Tax due, the amount you owe will decrease by the amount of taxes withheld.

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jhutton12Author

Level 2

Thank you for your response.

I'm hoping the state of Illinois sends us a 1099-G form, but as any other government office, it's impossible to talk to a live person or get a response.

When we login to our account and select "Request 1099-G", the website says we didn't have any compensation (paid back) so we can't request the form!

I really hope it's a bug in their website and they send us a 1099-G with $0 income and the taxes we paid.