How do I use my deductions I paid on in 2021, even though I got unemployment from PUA?

[the_iceman99turb]

Self employed contractor, using PUA Unemployment to pay bills and maintenance over 2021.  How can I use paid deductions (like years before) to deduct tax owe?

[xmasbaby0]

Apples and oranges.    If you were self-employed then you can enter business expenses that you paid on your schedule C.   But if you received unemployment in 2021 then you have to enter the 1099G from your state as income.

Unemployment compensation is taxable on your federal return. 

You will have to enter a 1099G that is issued by your state.

Some states will mail out the 1099G.  Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.

Enter your 1099G in Federal>Wages & Income>Unemployment

Go through the screens very carefully, making sure  to enter any federal/state tax you had withheld from the unemployment.

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-report-a-1099-g-for-unemploymen...

[the_iceman99turb]

Understanding what you are stating "xmasbaby0", and all of such for Schedule C has been done in the past.  However, this past year with Covid, PUA and being able to collect unemployment (which I was never able to do before being self employed) I still had some expenses that was paid even though I was unable to work.  Filing my 1099G, I am unable to input any deductions, like supplies, tool upgrades, improvements, vehicle deductions (oil, mileage, fuel), ect like I was able to on my S.C. every other year.  Surprising with the hefty pay back asking this year, where can I (if I can) provide the deductions to bring the over all tax down like years past?  So far All I am able to input is vehicle registrations, and possible office expenses if I show profit from using "said" office.... but only profit was made off of Unemployment / PUA because of the inability to carry out my job due to the pandemic fear.  Am I missing a tab or something? 

[RobertB4444]

No, you're not missing a tab.  I'm afraid that you can't deduct expenses from your unemployment like you can with your schedule C business income. 

You need to create a schedule C just like you have every year and enter in your expenses as usual.  Where it asks how much income you had you need to tell it you made zero dollars.  Then you will have a picture of your business for 2021 that is accurate - you didn't make any money but you did have some expenses in order to maintain the business while you drew unemployment.

[xmasbaby0]

Yes --- and this will be rough----but that unemployment is taxable on your federal return.   For 2020 Congress changed the tax law and waived federal tax on the first $10,200 of unemployment.   But they have not done that for 2021.   Unless they change tax laws in mid-tax season again, all of the unemployment is taxable on your 2021 federal return.   if you had tax withheld from your unemployment, make sure you enter it when you enter your 1099G.

[the_iceman99turb]

RobertB4444 &  xmasbaby0   .... I should have thought of that myself, but sometimes you just need another to make that bulb click on.  I am great full for both of your advice and will take this with me as I move on. Thank you both again for your experience knowledge and willing to help.  It was extremely appreciative.