Erroneous Negative Unemployment Compensation displaying - please help

[arsdean]

Hello all. This year I paid a lump sum payment back to private disabiity insurance . This amount was over 3K so I entered it as a Repayment under other Deductions->Claim of right of repayment over $3,000. I read publication 525 carefully and decided that taking a deduction this year would work best for me.

However what I dont understand is that now I have a negative amount (equal to what I enetered as a claim of right deduction) appearing in my Income section in Turbotax. It appears under the section Income -> Unemployment -> Unemployment and Paid Family Leave as a negative amount. Note I never got a 1099-G or recieved unemployment income (other than private LTD disability ). Why would this amount automatically appear in this section? Looks like it's being pulled over from the Claim of right of repayment section. Why would this be happening and how do I correct this?

Thank you! 

[ThomasM125]

I'm not sure why it is showing up in the unemployment section. However, you can look on your form 1040 schedule 3 to see if it is showing up on line 13(d) as it should. You can look at that entry and if you see your claim of right repayment amount listed there, then it is being applied correctly.

You can view your form 1040 while working in the online version of TurboTax by following these steps:

While working on your return in the Federal section of TurboTax:

   1.  Choose the Tax Tools icon on your left menu bar

   2.  Tools

   3.  View Tax Summary

   4.  Choose the Preview my 1040 on your left menu bar

[arsdean]

Hi - thanks for the response. So since I am itemizing , the claim of right payment appears on 1040 Schedule A, under the Other Itemized Deductions section,  line 16 as CLAIM REPAYMENTS. Is this the right place for it to appear if itemizing? 

[Critter-3]

https://ttlc.intuit.com/community/unemployment-taxes/help/what-is-a-claim-of-right-repayment/00/2153....

[arsdean]

Turbotax - I still haven't gotten a clear answer to this question (please see my original post) - there seems to be a bug causing repayment amount to appear in the income section as negative income (others have reported this as well and there seems to be no resolution - please escalate). This is for 2021 premier software with all the leatest updates. I am concerned about submitting my taxes with TT displaying incorrect information. Turbotax user for 10 plus years and never ran into this type of bug.

"....I dont understand is that now I have a negative amount (equal to what I entered as a claim of right deduction) appearing in my Income section in Turbotax. It appears under the section Income -> Unemployment -> Unemployment and Paid Family Leave...."

[DianeW777]

You can send us a “diagnostic” file that has your “numbers” but not your personal information which has all been scrubbed.  If you would like to do this, here are the instructions: 

TurboTax Online:

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax CD/Download:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number then place in this issue.
4. We can then review your exact scenario for a solution.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

[arsdean]

Token number is 985419, thank you

[DianeW777]

Claim of right is an itemized deduction when the repayment is over $3,000 as you indicated earlier. 

When I look at your tax return in TurboTax CD/Download version the claim of right repayment is correctly entered and included on Schedule A, Line 16, as it should be. I also recreated a scenario including the claim of right in TurboTax Online with accurate results. 

My suggestion is to clear cache and cookies.  First make sure that you do not have your return open, it may be a good idea to delete the entry and then enter it again after you clear.

When the return is closed follow the steps in the link below. This removes pieces of data we thought were deleted and it can create resolution many times in my experience. Then open the return again to see if the claim of right is included in itemized deductions.

• How to clear your cache

Please update here if you continue to have this experience.

[SweetieJean]

"this year"  Did you repay in 2021, or in 2022?

[arsdean]

Yes repaid entire balance in 2021, for tax year 2021. Just filing the taxes in 2022 before the April deadline

[arsdean]

Thanks Diane. Yes, I do see  the repayment amount corrctly on Schedule A, Line 16. That's not my issue. The problem is that in the Wages section (in the step by step view not forms) I see Negative Unemployment Compensation showing up in the exact same amount as the Repayment (except that it's negative). The repayment has nothing to do with unemployment payments. After clearing browsing data and cache/cookies, I still see the negative amount. Even though this displays in the step by step view, I am not sure if the negative unemployment number is included in any actual forms that will be submitted. That's what I am most concerned about. Also if I remove the repayment information , the negative amount also disappears. It seems the two are some how related in Turbotax's backend business rules. Still think this could be a bug. Happy to do a screen share if that would help expedite a resolution. Been unable to file my taxes due to this issue.

[DianeW777 · Accepted solution]

The key is that the tax return is appropriately handling the entries to the right forms and the return is being calculated accurately. I've tested it a few times and when I view forms it is not coming through to any area that it should not.

The miscellaneous deductions worksheet (Misc Dedns) shows the appropriate amount and is carried to Schedule A.  Line 7, Schedule 1 shows no entry for any unemployment compensation so be sure to check your forms for this as well. There is no reduction to income so it is likely an appropriate calculation taking place. 

You can file your return without concern since the income is not being reduced by anything other than the itemized deductions as it should.

Thank you for your clarification.