I applied for unemployment from the state due to reduction in work hours. I received $1800 and was then told that I was not eligible. I have paid the entire amount back.

[laz0707]

Do I have to claim my unemployment if the state sent it to me and then told me I was ineligible?  I have paid it back in full.

[ColeenD3]

Did you receive a Form 1099-G? Did you pay it back in the same year or in 2021? 

You will encounter screens within the program that address your issues. The first screen will ask, "Were you required to repay unemployment benefits (uncommon)? Learn more".

Next, "Did you pay back any government unemployment from 2019 or earlier? Learn more"

The Learn more links will provide additional information.

[laz0707]

I have not yet received a 1099-G. 

I paid it all back within 2020. 

I have never applied or received unemployment benefits at any other time in my life.

[laz0707]

Thanks for your advice!  

[laz0707]

I have not received an answer to my inquiry.  

[ThomasM125]

You don't need to report it on your tax return if you don't receive the form 1099-G.

What may happen is that you file your tax return and then receive the form 1099-G afterwards. If that happens, you may receive a notice from the IRS sometime later requesting you pay tax on the unemployment, but all you need to do is correspond with them and explain what happened and they will reverse the charge.

You should keep a copy of the check you used to pay the unemployment back so you can send it to the IRS if necessary to prove that you repaid it.