I don't know why you withdrew them but if you did so because of the Corona virus and withdrew less than $100,000 there are some benefits available to you.  There is no penalty but hopefully your bank told you that you do have to pay Federal income tax on your withdrawal, which is why I assume why you are getting this message.  Since you took the funds and didn't roll them into another account the entire amount on Box 1 is taxable to you.  Box 7 tells you and the IRS what the withdrawal is for.  I assume it has a "1" in it.  You could have rolled it over into another retirement plan and avoided the tax but it is too late for that.   You can elect to pay tax on this withdrawal over 3 years and have the ability to put the money back in the retirement account and get all of your tax money back.  Basically treat the whole thing as though it never happened.  What you would have is an interest free three year loan.  Not much of a benefit in today's low interest environment. If you want to continue to have these funds available for your retirement I suggest you elect to pay the tax over 3 years and pay them back in their entirety as soon as you can and apply to get the 2020 tax back. If you need to spend the funds and won't return them to your retirement account I suggest you elect to pay the tax over 3 years and put aside enough to do so. I don't know how to get Turbo Tax to defer 2/3 of the tax but I assume you can call their help line - or perhaps someone else will reply to this with the method.  Just remember the funds must be available to pay your taxes over the next 2 years so don't spent all of your withdrawal.   ... View more

If your AGI is less than $150,000 and you do as I advised your problem goes away.  If your AGI is over $150,000 and your tax is increased I would then go to Schedule 1 , Line 8 and add as an explanation "Identity Theft Erroneous 1099G"  and put in a negative equal to the UC on your 1099G.  The big issue in any case is was there tax withheld form the UC?  I assume not since a crook wouldn't want to reduce his fraudulent income by having tax withheld.  If it was withheld I would not use the tax when inputting the 1099 G.  The IRS might send you a notice giving you the benefit for the tax.  Then you can explain why the income wasn't yours.  I believe that these crooks could earn a legitimate living if they used the talents necessary to steal your wife's identity and get UC in legal employment.   ... View more

Not really.  As I noted the exclusion will get rid of the taxable income from the UC.  I don't know what he meant regarding entering a 1099.  My guess is that he recommended the same thing I did but it got misconstrued. ... View more

Sorry for my previous long-winded reply but here is more info.  You won't be audited if you omit the UC.  You will just get a letter from the IRS saying you missed including it and computing the tax on the UC.  At that time you can provide your info about the identity theft.  Maybe by then you will hear from your state.  If not you can explain your situation and they will probably accept your reasoning.    If your AGI is less than $150,000 (Line 11 form 1040) the $10,200 exclusion will insure you aren't paying tax on the UC. ... View more

You aren't having much luck with your state folks and most are inundated with questions re UC and can't respond fast enough.  I agree that if you omit it, you will probably get a notice from the IRS.  I suggest you input the 1099 G if your AGI  is less than $150,000.  Since your 1099 G amount is less than 10,200 and there is a $10,200 exclusion Schedule 1 on your return will show the unemployment and on the line below a negative entry to basically wipe out the unemployment and net it to "0" and have no effect on your taxable income or tax.  If your state doesn't exclude UC from tax this won't work since you might have state tax on  the UC received.  To be sure that there i no effect on your taxes I wold advise completing the return without the UC and looking at the amount of tax due or refund from the IRS and your state. Write them down.  Then input the 1099G look at Schedule 1 to see if the UC is offset by a negative entry on line 8.  Also look at your amount of tax due or refund from the IRS and your state.  If they are the same then you haven't incurred any tax on the inclusion of the UC.  If your tax due is higher or refund is lower it had an effect on you and you should wait for an amended 1099G that shows "0" income.  Lots of luck on that.  ... View more

She must be younger than 17 for you to get the check. ... View more

The $500 is for a qualifying child which is defined as one 17 or younger ... View more

The payment is based on information they have in their system for you.  If you didn't file a 2019 return they just have 2018 and prior info to go by.   The payment will be based on 2018 and if your income was higher then could have limited the amount you receive. ... View more

It doesn't matter how you filed with Turbo Tax or another program.   ... View more

Did you file for 2019 yet?  It appears that 2018 info was used when your child wasn't a dependent. ... View more