Erroneous Negative Unemployment Compensation displaying - please help

Forum|Forum|4 years ago
March 24, 2022
1 reply
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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!

Best answer by DianeW777

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

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.

ThomasM125

Level 15

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

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arsdeanAuthor

Level 3

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...."