I was owed 2020 PUA pymts. They were tax exempt for 2020 only but was back paid in 2021 because our state was so backlogged in FL. How do I handle this?

I received an email a few days ago from our state acknowledging that most filers have been locked out of the unemployment system unable to log in and therefore are mailing us a now, days before the filing deadline a 1099-G.. It arrived yesterday. Because I was owed the funds in 2020 I do not believe I should be penalized for receiving them in 2021.

189

Expert Alumni

Apr 14, 2022 10:02:01 AM

There is no provision in the tax law at this time to exclude unemployement benefits received in 2021 from taxble income no matter when they were earned. The benefits exclusion as part of the American Rescue Plan was specifically for benefits received in 2020 only. Here is the IRS announcement.

Taxpayers will enter their 2021 form 1099G information in the "Income" tab using the "Unemployment" topic.

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I was owed 2020 PUA pymts. They were tax exempt for 2020 only but was back paid in 2021 because our state was so backlogged in FL. How do I handle this?