I lost my job last year and received unemployment. After reveiw and fighting with my employer...who had a lawyer...they claimed that I was ineligable to receive it and claimed that I received $3000 in over payment.
I am in the process of paying this all back, but now I received a statement from them saying that I has to include this on my tax return as income.
How is it that I have to pay taxes on this money when I am paying it back? How is it considered income when I am paying it back. Since I have to pay it back, isn't that like I never got it?
Can I just act like I didn't get that statement and file without it?
I don't see why I am being made to pay taxes on money that I have to return to them.
2007-02-02 03:26:55 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Publication 17, page 84 says, You will claim the amount they paid you, and then deduct the amount you did pay back. Because the 1099-G information is being supplied to the IRS, and you don't need that kind of trouble. Seek the help of tax professional. Enter the difference on line 19 of the 1040, 13 of the 1040A or line 3 of the 1040Z
good luck & blessing
2007-02-02 03:41:41 · answer #1 · answered by Wood Smoke ~ Free2Bme! 6 · 1⤊ 0⤋
I was on unemployment this year and I can tell you that it has to be reported on your tax return as unearned income. Next year when you file this years taxes you may get a credit for the money that you had to pay back. You can't just pretend like you didn't get the statement because the IRS also got a copy and you could end up in hot water.
2007-02-02 03:39:06 · answer #2 · answered by boinga28 2 · 0⤊ 0⤋
Unemployment benefits are added to regular wages earned in the year. He should have received a 1099 from the state each year he claimed unemployment. A copy is sent to the IRS. Tax refunds can be taken by the IRS or the state to pay court ordered back child support. About the only way you can find out is to ask the mother of his child(ren) if she has received the money or not. You should file a tax return (or at least fill one out) to determine any tax liability for the total gross adjusted federal income tax.
2016-05-24 05:15:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Unless you paid it back in 2006, it's taxable for 2006. If you didn't pay any of it back in 2006, it's all subject to tax. You can take a deduction for 2007 for whatever you pay back this year on your tax return next year, however.
You have to pay tax on any money you received, even if you weren't entitled to it.
2007-02-02 03:31:48 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Once you pay it back you will get another W-2 with the correct amount. It will pobably be next year since that was considered income received for last year.
2007-02-02 03:33:08 · answer #5 · answered by 20???'s 2 · 0⤊ 1⤋
I would just not include it and IF it catches up with you by that time you will have paid all the money back anyway. Just make sure you save the Prof of your payments. Worst case scenario is they take what you owe unemployment out of your tax return. Hopefully this helps!
2007-02-02 03:32:15 · answer #6 · answered by ninalatti 2 · 0⤊ 2⤋
You can NEVER act like you didn't get a statement...believe me, the one sending it to you has sent the government a copy as well..call the IRS hotline..a tax filer like H&R Block or a tax attorney or CPA...they can tell you what to do...most likely, you will get a refund on the taxes on the money you acutally got, since you are returning it...bassackwards I know, but itsn't everything like that with our government???
2007-02-02 03:32:43 · answer #7 · answered by Toots 6 · 0⤊ 1⤋