If a taxpayer received unemployment benefits during the year, they should have received Form 1099-G from the state unemployment office, which details the total amount paid.
Steps to Enter Unemployment Compensation in Tax Software
To properly report unemployment income on a tax return, follow these steps:
Navigate to the Federal Section from the left-side menu.
Select Income and locate Form 1099-G.
Click Add or Edit a 1099-G and enter the details from the taxpayer’s Form 1099-G, Box 1.
Once entered, ensure that all details match the information provided by the state agency to avoid any errors or delays in processing the return.
Final Notes
✔️ Unemployment compensation is fully taxable unless specified otherwise by law.
✔️ Ensure that the Form 1099-G details are entered accurately to prevent discrepancies.
✔️ If any tax was withheld, report that information as well to properly calculate the taxpayer’s total tax liability or refund.