Unemployment compensation is considered part of the gross income reported on an individual tax return (Form 1040). If the taxpayer received unemployment benefits during the year, they should have received Form 1099-G after the year ends, showing the amount they were paid.
Occasionally, taxpayers may need to repay unemployment benefits if they were later denied or if they received more than they were entitled to. The repaid amount is reported separately from Form 1099-G. To enter the repaid unemployment compensation for the current year, follow the steps below:
From the left-side widget, go to Federal Section, then click Income
2. Navigate to Box 1 on Form 1099-G.
3. Choose the option for Repayment of Unemployment.
The total from Form(s) 1099-G, minus the repaid amount, will be transferred to Schedule 1, with "REPAID" and the corresponding amount displayed on the same line.