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annon1
New Member

Mistakeny approved for unemployment taxes paid taxes repaid all including taxes. Now what?

I was mistakenly approved for unemployment in MS (where I live) and received 5 weeks of payment before I found that out. They told me had I apply in FL (worked remotely and never set foot in FL, pay taxes in MS, now have to repay MS unemployment received). I had MS  (and FL) unemployment withhold federal taxes.

 

Now I am arranging to pay back 5 weeks of unemployment from MS. They say I have to repay the federal 10% withheld too instead of just paying back the net I received. They said they can't pull back they money paid to the IRS on my behalf. Is this actually true? I am having problems getting anyone to answer the phone at MS unemployment and am getting conflicting answers from the IRS. Paying MS  $353 (eg the $ paid to the IRS) I never saw while still being unemployed is going to be really difficult.

 

Questions:

 

1) Is it true that MS can't get back the federal tax paid on my behalf to the IRS since I was paid by mistake and 100% of what I was paid in unemployment was involved. This involves the $600/week pandemic money too, not just my state unemployment amount.

 

2) What do I do for taxes next year if I can't get that IRS tax money back yet had to pay the gross back to MS (so I will have, in the end, $353 that MS paid to the IRS  with no unemployment income from MS)? I read that I will have to claim as income the MS money I received regardless of the fact that I had to pay it back; that the only was I can subtract the money I paid back  is as an itemized deduction. That can't possibly correct. Is it? Since I won't be able to itemize that won't work.

 

3) Will MS issue me a form for how much I paid to the IRS even though I now have no unemployment money paid to me in MS?

 

4) Will they issue me a form stating that I had zero unemployment money received from them in the end? I can't get anyone at MS unemployment on the phone who knows the answer to that.

 

5) Since it is unlikely that I will even owe Federal taxes (I am having FL , the state I was supposed to get my unemployment from, withhold money too just in case I finally get a job before the year is out) will I get ALL of the FL and MS federal tax money paid into the system back (presuming I owe no taxes)?

 

6) How do I list the unemployment money received and then had to pay back on a tax form? Do I even have to list it since I had to pay it all back so 100% of it was an overpayment?

 

7) Is turbo tax even set up to deal with a situation like this (please tell me yes!!!)  or will I have to file by hand to "get it right"?


Thanks!

2 Replies
Critter-3
Level 15

Mistakeny approved for unemployment taxes paid taxes repaid all including taxes. Now what?

1) Is it true that MS can't get back the federal tax paid on my behalf to the IRS since I was paid by mistake and 100% of what I was paid in unemployment was involved. This involves the $600/week pandemic money too, not just my state unemployment amount.   YES

 

2) What do I do for taxes next year if I can't get that IRS tax money back yet had to pay the gross back to MS (so I will have, in the end, $353 that MS paid to the IRS  with no unemployment income from MS)? I read that I will have to claim as income the MS money I received regardless of the fact that I had to pay it back; that the only was I can subtract the money I paid back  is as an itemized deduction. That can't possibly correct. Is it? Since I won't be able to itemize that won't work.   You file a  resident MS return to get a refund of MS taxes withheld in error. 

 

3) Will MS issue me a form for how much I paid to the IRS even though I now have no unemployment money paid to me in MS?  Yes they will ... you may need to download it online.

 

4) Will they issue me a form stating that I had zero unemployment money received from them in the end? I can't get anyone at MS unemployment on the phone who knows the answer to that.  Yes they must. 

 

5) Since it is unlikely that I will even owe Federal taxes (I am having FL , the state I was supposed to get my unemployment from, withhold money too just in case I finally get a job before the year is out) will I get ALL of the FL and MS federal tax money paid into the system back (presuming I owe no taxes)?  Any excess withholdings can and will be refunded ... that is the whole idea behind  filing an income tax return. 

 

6) How do I list the unemployment money received and then had to pay back on a tax form? Do I even have to list it since I had to pay it all back so 100% of it was an overpayment?  In the program you will be able to indicate the amount repaid so it nets out properly ... follow the screen instructions carefully.

 

7) Is turbo tax even set up to deal with a situation like this (please tell me yes!!!)  or will I have to file by hand to "get it right"?   It is ... READ all the screens as you go. 

annon1
New Member

Mistakeny approved for unemployment taxes paid taxes repaid all including taxes. Now what?

Thank you SO MUCH for your answers. I am a resident of MS though (worked remotely in FL and never set foot in FL so should have been able to apply via MS for unemployment but employer paid into FL and not MS so I was out of luck. Too bad as MS gives more than double the number of weeks that FL does) so I'd guess when I file FEDERAL I'd get the money back since only IRS federal money was involved.

 

State taxes wouldn't be involved in any way other than since I physically live in MS I have to claim the FL unemployment money in MS? FL doesn't have state taxes so that at least means no state tax issues in 2 states.

 

Again thank you for the answer as this is confusing.

 

 

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