Question

How to report Unemployment Repayment Question

Forum|Forum|1 year ago
January 27, 2025
2 replies
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I received unemployment compensation for 2023 and 2024. In March 2024, I was informed that I was overpayed benefits and had to repay them.
How would the repayment be reported on 2024 federal or state tax return (New Jersey)?

M

MAK70

You will want to report the repayments in the year you repaid. In TurboTax, when you enter the 1099-G, you can indicate the repayment. (Look for the screens below.) This will reduce the amount of taxable income for you. The income from the federal tax return will be used for New Jersey so no additional information is needed in the state section of TurboTax.

P

Pinkyl321Author

Hi, thank you for your response! I see the boxes that you are referring to on TurboTax, but I just want to make sure I understand how exactly it gets reported before filing. Would the repayment go on Schedule 1 as a subtraction from the 2024 benefits received? (The repayment was for benefits received in 2023, but I was not informed they were overpayed until 2024) Or is there a different form or line on Schedule 1 that this would be imputed?

rjs

Employee

Unemployment benefits are not taxable in New Jersey, so there is no adjustment on the New Jersey tax return for the repayment. Neither the benefits you received nor the repayment will appear on your New Jersey tax return.

P

Pinkyl321Author

Hi, thanks for the response! I had forgotten this was the case in New Jersey so thank you for the reminder! What about for the federal tax return? Another commenter has shown how to input into Turbo Tax, but I just want to make sure I understand what form/line this information would go on before actually filing.

rjs

Employee

@Pinkyl321

You have now clarified that "The repayment [in 2024] was for benefits received in 2023." The instructions that MaryK4 gave you above are for repayment in the same year that the benefits were received. Repayment of benefits that you received in an earlier year has to be handled in a completely different, and more complicated, way.

You have not said the amount that you had to repay. If you repaid $3,000 or less of benefits that you received in an earlier year there is no tax adjustment. You don't report the repayment on your tax return. You don't enter the repayment in TurboTax at all.

If you repaid more than $3,000 of benefits that you received in an earlier year you have a choice of two ways to report the repayment on your 2024 tax return. You can claim either an itemized deduction for the amount you repaid, or a credit that is determined by a recalculation of your 2023 tax return. You can choose whichever makes your 2024 tax lower. If you repaid more than $3,000 post back and I will give you the details of the two options.

Please note that, when more than one person has posted, and you reply to someone else's post, there is no indication of who you are replying to unless you state it in your reply.