State UI insurance issued incorrect 1099-G and refuses to correct.

[Wyreth]

Being a freelancer, I got caught between the PUA unemployment program and the standard unemployment program in Nevada.  Initially I was payed under PUA because my W-2 income did not meet the standard unemployment threshold.  So I was initially paid under the PUA (cares act) program.  Later I was moved to standard unemployment, they backdated my claim, and issued a determination that I had to pay back the amount I was paid under PUA.

However, I was issued a 1099-G from the PUA program with the amount I had to pay back listed as income.  When I called unemployment to have this corrected, they said:  We paid it to you, it's income.  Doesn't matter if you had to pay it back. *click*

When I called the IRS to find out what to do about this, their response was: well because it's the program for your self employment, we have no way to help you.

What do I do?

[JoannaB2]

Under American Rescue Plan signed in 3/11/2021, the first $10,200 of unemployment payments are excluded from federal taxation with modified AGI under $150,000 for married couple. If you’ve already filed your 2020, don't do anything as the IRS will provide guidelines soon. If not, click here.

[Wyreth]

that does not help at all.

I had 25k income from standard UI,  Then 15k from PUA that I had to pay back.  So while cool, the exclusion is meaningless in regards to this issue. 

[MaryM428]

When you enter your 1099-G, fill in the amount that you repaid.  It will be under Box 1 on the TurboTax screen.  

That will cancel out the unemployment and you will not be taxed on it.

Do I have to pay taxes on unemployment?