NC unemployment overpayment

[scoot1989]

Ok so I have all of my paperwork ready to file my taxes but the problem I have is I received UI benefits in 2022. I had to pay it back. It wasn't for much $640 I believe. I got the notice that I had to pay it back because I accepted a job and the lady on the phone when I called the support center in Raleigh told me to report any earnings I made when I filed my weekly certification. I did and I guess they decided I needed to pay it back. Ok cool no big deal.

I started paying on it in Nov 2023 when I got the notice. I finished paying it off in May of 2024. I also received UI benefits again in Nov 2024 due to the company shutting down the plant site I was working at. I got my 1099-G from NC but my question is where do I report the amount that I paid back? NC doesn't put any overpayment you paid back on the 1099 which is why I am asking. TYIA!

[DianeW777]

There is nothing to report in 2024. The federal return will not allow any deduction or reduction on your 2024 tax return since the income you reported was in 2022.  Since the Tax Cuts and Jobs Act (TCJA) of 2017, only a repayment in excess of $3,000 of previously taxed income, is allowed to be used to reduce income in the current year.

Likewise a repayment of unemployment benefits would only be allowed to reduce your unemployment income if it was received and repaid in the same tax year.