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I received unemployment benefits in 2024, but as of Jan '25 I have to pay back a portion. Do I select yes to "were you required to repay unemployment benefits?" for '24?

I just received notice in January 2025 that I will have to repay a significant portion of unemployment benefits I received. But I am unsure how to answer the question for my 2024 taxes since I technically have not paid them back yet, but will in 2025.
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1 Reply
DawnC
Employee Tax Expert

I received unemployment benefits in 2024, but as of Jan '25 I have to pay back a portion. Do I select yes to "were you required to repay unemployment benefits?" for '24?

No.  Even if you select that option, it is going to ask you how much you paid back in 2024, which would be zero.   But since you know you will be repaying income reported in 2024, you could wait to file your taxes until after you repay the income - which will lower your taxes and possibly prevent amending later.   

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