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Returning Member
posted Jan 11, 2022 10:12:11 AM

Overpayments of benefits - Repaid

I was informed that I had to repay all the benefits (unemployment) that I received which I did.

Where do I record this on my tax return?

 

0 5 559
5 Replies
Level 15
Jan 11, 2022 10:14:40 AM

Were the benefits paid and repaid in the same tax year ?    

Returning Member
Jan 11, 2022 10:19:20 AM

The benefits were paid in 2020.

I made some repayments in 2020 and then in 2021.

Amount was $5029

Level 15
Jan 11, 2022 10:22:35 AM

Wait for the 1099-G form ... it should have the repayment already reflected on it same as it was on the 2020 form. 

Returning Member
Jan 11, 2022 10:23:39 AM

Thanks

Level 15
Jan 11, 2022 10:29:37 AM

the amount repaid in the same year as received (2020) should have been excluded from taxable income.

 

to get any benefit of the amount repaid in 2021 it must exceed $3,000

then you have an option 

1) take as a deduction on schedule A line 16 and denote as IRC 1341 repayment

OR
2) recompute the taxes for 2020 by excluding the payment. the decrease in taxes is taken as a credit on schedule 3 line 12d denote as IRC 1341