Unemployment

[Tracy Lee]

TP received a 1099 G with $29,000.00+ in unemployment with over half of that being back pay for 2020 because the state of Oregon screwed up.  With that said, she got jipped out of the $10,200.00 exclusion from last year.  Any thoughts on whether I can do something where she could still get that benefit or will I have to make all of it taxable?  From my research it would seem 'to bad so sad' all taxable.  FYI.....the state included both the 2020 and 2021 all on one form because it was all received in  2021.

Any thoughts or advice?

[Yardley CPA]

Are you able to amend the 2020 return to show the amount attributed to 2020 and use the rest on the 2021 return?  Is that an option, given it was Oregon's fault?

[Lee B]

Doing so would trigger a CP 2000, which could be challenging to deal with.

[Tracy Lee]

If Oregon had done two separate 1099s, one for each year, showing it was for year 2020 but they didn't.  They combined both years into one 1099.

[grandmabee]

But they were PAID in 2021 so 2021 income.  Same as if December wages were paid January.

I don't feel sorry for them, they got all that extra money 600 a week from the Federal.

[Tracy Lee]

Thank you for the advice.  I agree.  I don't feel sorry for her, just frustrated that our government is so careless about 'we the people'!