Question

Taxes

Forum|Forum|4 years ago
September 9, 2021
1 reply
0 views

In 2020 I received and reported my unemployment earnings on my TurboTax. Around March 2021 I receive notice that my unemployment was not taxable and I was due a refund from the IRS, I received my refund about two weeks ago, all is well.

Now I am in the midst of paying back all of my unemployment to the state of South Carolina because they ruled me ineligible, which is acceptable. How will that affect my tax reporting for 2021 and I have not had any unemployment compensation in 2021.

AdamNe

Hi @ENJohn ,

You may be eligible for a deduction or a credit based on unemployment benefits repaid that were previously taxed.

When you are preparing your taxes next year with TurboTax, in the Wages and Income section start the process of reporting Unemployment Income, but indicate that you didn't receive any benefits on a 1099-G or otherwise. You will also be asked if you repaid any benefits from a prior year. When you enter them, TurboTax will calculate the credit or deduction for you!

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"