If the repayment of benefits was for tax year 2021 and you repaid it in tax year 2021, in TurboTax, when you enter your 1099-G, enter the amount as a positive number in the Form 1099-G, 2021 benefits repaid box.
If the repayment of benefits was for tax year 2020 or earlier, enter the amount repaid in 2021, as a positive number.
Note:
If the unemployment overpayment is less than $3,000 and you repaid it in a subsequent year, you won't be able to deduct it.
If the unemployment overpayment is greater than $3,000 and you repaid it in a subsequent year, you'll be able to deduct it as an itemized deduction.
Per IRS Publication 525, page 27 and 36: . If you repaid unemployment compensation in 2021 that you included in your income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 16, if you itemize deductions and if the amount is more than $3,000.
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