PUA and 1099 G form

[Tax_question10]

Hi 

I got the one Pandemic Unemployment Assistance (PUA) payment last year.  But I got the notice to return the payment as well and have not got any other payments. I have filed an appeal on that. 

I have got the form 1099-G form with Federal income tax withheld and State income tax withheld. 

Do I need to include this form on my tax return or not, as I got the notice to return the payment?  

Please let me know what option do I have. I was waiting for my appeal as initially, they told me of 4 weeks but now they have told me to wait for 8 weeks. 

Thanks 

[MaryK4]

Yes you need to include the 1099-G income on your tax return.  If you receive and return the money in the same tax year you would be able to subtract the repayment from the reported amount.  Since you do not have a final decision and have not returned the money yet, you will need to report the income.

[Tax_question10]

@MaryK4 

Thanks 

I include the form 1099-G in my taxes and but what if, later on, I have to return the payment. 

Do in that I have to amend the tax return. 

Thanks 

[Tax_question10]

@MaryK4 

I have received the $267 during 2020 but might have to return it in 2021 if I have to.

Should I wait for the appeal decision or can file taxes now. 

Thanks 

[MaryK4]

You will not have to amend your tax return-

If you have to repay an amount that you included in your income in 2020, you may be able to deduct the amount repaid from your income for the year in which you repaid it. Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. 

However, since the new law will exempt $10,200 of unemployment income so you will not have to pay tax on it anyway. 

@Tax_question10

[MaryK4]

You do not have to wait - you can file your tax return.  Once again, you may want to wait until the new law is passed because you will not have to pay tax on it even though you report it. @Tax_question10

[Tax_question10]

Thanks 

@MaryK4  Which Law please and when it is going to be passed please 

[KrisD15]

The bill is the current COVID relief bill, titled The American Rescue Plan and has passed the House and Senate. 

It is expected to be signed into law Friday.