If you received a Form 1099-G for unemployment compensation that you received during the year, you can enter this in your account go to:
- Federal Section
- Income - Select My Forms
- Form 1099-G Box 1 Unemployment Compensation
- Add or Edit a 1099-G
For tax year 2020:
The first $10,200 of unemployment income can be excluded from your federal income. If married filing jointly and both spouses received unemployment, the amount increases to $20,400. The AGI must be less than $150,000 for both single and joint filers.
If the taxpayer has already filed for 2020, they will be affected. At this time, the IRS is still determining how the adjustment will be handled. The IRS does not expect returns that have already been filed to be paused or interrupted by this change.
How do I report unemployment I repaid?
Unemployment received and repaid in same tax year- If you received unemployment income and repaid it in the same year, you can subtract the amount you repaid from the total amount received. You will make that entry in our program by going to:
- Federal Section
- Income
- 1099-G Box 1
- Repayment of Unemployment
Unemployment received in one year and repaid in a later tax year- If the repayment was made in the current tax year for a prior year where the unemployment compensation was claimed as income and it was:
- less than $3,000 enter it here:
- Federal Section
- Deductions
- Itemized Deductions
- Miscellaneous Deductions
- Add Additional
- greater than $3,000 it is claimed here:
- Federal Section
- Deductions
- Itemized Deductions
- Miscellaneous Deductions
- Repayment under claim of right (if greater than $3000).
* Effective Tax Year 2018 repayment of unemployment income for a prior year that was less than $3,000 is no longer deductible.
For further information see Publication 525