Unemployment payback in a different year

[s6skuzy]

Hi...

I received unemployment in 2020 and for a couple weeks in 2021.  I paid both state and federal taxes and I ended up having to pay it all back in 2021.  How do i enter this on my taxes?  If I show the repayment in 2021 when I do my taxes, how to i recover the money I paid for taxes in 2020?  This is about 3000 in taxes.

Thanks

[SweetieJean]

You claim the full amount on your 1099-G on your 2020 tax return.  TT will automatically deduct up to $10,200, as provided for in the new tax law.   Then come back in early 2022 when you are ready to file your 2021 return, and we'll tell you how to handle the 2021 payback.

[s6skuzy]

Thanks Sweetie Jean,

Any hints?  I guess I am concerned that I wont be able to get all the impact of the income and paying the taxes back.  Would this be done on schedule A?

[AnnetteB6]

Yes, the repayment will be handled on Schedule A for your 2021 return.  

To follow-up on your original question, you mentioned that you paid $3000 in taxes on the unemployment compensation.  If you were referring to $3000 of Federal and/or state withholdings that were taken from your unemployment payments, then that amount has already been taken into account on your Federal and/or state tax return for 2020.  The withholding amount is added to any other withholdings (such as from a W-2) and it is used to calculate your final refund/balance due amount on your 2020 return.  So, you could already be getting that money back as part of your tax return.

@s6skuzy