Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Feb 9, 2021 1:38:39 PM

Why is my entire 2020 UI being applied to my 2020 AGI when I repaid several thousand dollars for prior years? Shouldn't that repayment come off the top?

I received roughly $12k in unemployment benefits for 2020 (none of the COVID benefits had their taxes withheld). I repaid roughly $3-4k of that before even seeing it for tax year 2017. Shouldn't my UI be $8-9k for AGI? (rough numbers due to incorrect 1099-G received; waiting on corrected)

0 1 287
1 Replies
Expert Alumni
Feb 9, 2021 4:03:05 PM

You can deduct the payments if under $3,000 on your 2020 tax return as an itemized deduction, but that won't benefit you if don't itemize, which most people don't anymore.

 

Your other option is to recalculate your tax in the year the UI applies to and enter the benefit on your 2020 tax return as a credit (reduction of tax). Here is an quote from IRS Publication 525 that explains how to do it: