payback of UI benefits.

[momofrose]

What is the name of your state (only U.S. law)? NJ

Had to pay back NY state a total of $616.00 in 2009 for "overpayment of unemployment benefits".

We already paid taxes on the collected amount (in 2008) how do I show this payback on this years taxes so that we are credited back the amount of taxes previously paid on the $616.00?

Thanks - we have searched everywhere and can not find this info.

 

[commentator]

Don't really think it can be done. I'd suggest you call your state's Dept of Labor unemployment overpayment and fraud unit, the folks you paid the money back to in the first place, and discuss this with them. It would probably have come out to about $60 in additional income that you were taxed on in 2008 when you did receive the unemployment.Eliminating this amount from the income you were taxed on in 2008 would very likely not have a tremendous effect on the amount of taxes you paid then. So recouping the loss of ???? doesn't seem either possible or worth pursuing, but I'm sure its feasibilty or legality is covered somewhere in the tax codes.

 

[LdiJ]

What is the name of your state (only U.S. law)? NJ

Had to pay back NY state a total of $616.00 in 2009 for "overpayment of unemployment benefits".

We already paid taxes on the collected amount (in 2008) how do I show this payback on this years taxes so that we are credited back the amount of taxes previously paid on the $616.00?

Thanks - we have searched everywhere and can not find this info.

If you are using software the software should put it in the right place. If you are doing the return by hand, it goes on line 19 as a negative number, and you write "repaid" to the left of the number.

 

[davew128]

Actually the correct treatment from the IRS website: Deduct the repayment in the later year as an adjustment to gross income on Form 1040. (You cannot use Form 1040A or Form 1040EZ.) Include the repayment on Form 1040, line 36, and enter “Sub-Pay TRA” and the amount on the dotted line next to line 36.

You only net repayments if they are of current year benefits not prior year benefits.

 

[LdiJ]

Actually the correct treatment from the IRS website: Deduct the repayment in the later year as an adjustment to gross income on Form 1040. (You cannot use Form 1040A or Form 1040EZ.) Include the repayment on Form 1040, line 36, and enter “Sub-Pay TRA” and the amount on the dotted line next to line 36.

You only net repayments if they are of current year benefits not prior year benefits.

We may both be wrong...the following comes from pub 17:

Repayment of unemployment compensation. If you repaid in 2009 unemployment compensation you received in 2009, subtract the amount you repaid from the total amount you received and enter the difference on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. On the dotted line next to your entry enter “Repaid” and the amount you repaid. If you repaid unemployment compensation in 2009 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 23, if you itemize deductions. If the amount is more than $3,000, see Repayments , earlier.

And the "repayments" section:

Repayment over $3,000. If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. This means that at the time you included the income, it appeared that you had an unrestricted right to it. If you qualify for this choice, figure your tax under both methods and compare the results. Use the method (deduction or credit) that results in less tax.

And the "methods" for the deduction section:

Method 1. Figure your tax for 2009 claiming a deduction for the repaid amount. If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 28.

Method 2. Figure your tax for 2009 claiming a credit for the repaid amount. Follow these steps.
Figure your tax for 2009 without deducting the repaid amount.

Refigure your tax from the earlier year without including in income the amount you repaid in 2009.

Subtract the tax in (2) from the tax shown on your return for the earlier year. This is the credit.

Subtract the answer in (3) from the tax for 2009 figured without the deduction (Step 1).


If method 1 results in less tax, deduct the amount repaid. If method 2 results in less tax, claim the credit figured in (3) above on Form 1040, line 70, and enter “I.R.C. 1341” in the column to the right of line 70.

 

[davew128]

LdiJ, this is from the OP:

Had to pay back NY state a total of $616.00 in 2009 for "overpayment of unemployment benefits".

We already paid taxes on the collected amount (in 2008) how do I show this payback on this years taxes so that we are credited back the amount of taxes previously paid on the $616.00?

I stand by my comment. The repayment is of 2008 benefits reported on the 2008 1040 and was less than $3,000. There is only one treatment of this.