Hi, I'm not sure if you can answer this question but I have been paying the state for an overpayment on unemployment. Am I able to somehow claim the interest paid? Any info on this subject would be helpful. Thank you.
You'll need to sign in or create an account to connect with an expert.
When you repay unemployment benefits in the year after you received them, you may be eligible for a deduction or credit on your taxes for the current year (in this case, your 2021 taxes).
When you are preparing your taxes next year with TurboTax, in the Wages and Income section start the process of reporting Unemployment Income, but indicate that you didn't receive any benefits on a 1099-G or otherwise (unless you did, of course!). You will also be asked if you repaid any benefits from a prior year. When you enter them, TurboTax will calculate the credit or deduction for you!
Hi harryhawk999!
Great question! Unfortunately, interest paid on an overpayment of income is not a deductible item on the federal or state tax return. Please let me know if you have any more questions. Thanks! Akil C.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
megan0956
Returning Member
uniformgc1177
New Member
mssweetemotions
Level 1
silkaton
New Member
tf35sc
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.