If I am contesting an unemployment overpayment but still haven't been given a court date/summon, do I still pay the taxes for the overpayment first when I file my taxes?

[sliu103]

The office has sent me a letter saying they received my unemployment overpayment appeal and to wait for the court summon. I haven't received the court summon yet but I have to file my taxes so I cannot wait for the court summon first. Since I am not sure how the court will rule, should I pay the taxes on the overpayment first?

[MinhT1 · Accepted solution]

Yes.

You have received a form 1099-G. Unemployment benefits are taxable. You must report the form 1099-G on your tax return and pay taxes on it.

If and when you actually repay all or part of the unemployment benefits, you will claim it in the year of repayment.