Repayment of Unemployment

[AnnieR]

T/P received unemployment in 2008 that had to be repaid. T/P check was cashed by ODFJS (Ohio Dept of Jobs and Family Services) and paid from T/P's account on 12/31/08. There was $72 w/h from his one and only check from UE, he paid back entire amount of $698, the gross of his payment. How do I recover the w/held amount? Add it into fed tax w/h? If I sound confused, it's just because I am. Oh, and there is nothing on his 1099G showing the repayment. Do I deduct it on Line 36 or just adjust the 1099G in Box2?

AnnieR

[BulldogTom]

This may not be the "right way" to do it, but I would enter two separate 1099G's. The first one with the UI he was paid and the Federal withholding. The second one with just the repayment. It should all flow to the right places - netting out the UI on the front of the 1040 and adding the Fed W/H to the rest of his payments on the second page.

Just my thought.

Tom

Lodi, CA

[Janitor Bob]

T/P received unemployment in 2008 that had to be repaid. T/P check was cashed by ODFJS (Ohio Dept of Jobs and Family Services) and paid from T/P's account on 12/31/08. There was $72 w/h from his one and only check from UE, he paid back entire amount of $698, the gross of his payment. How do I recover the w/held amount? Add it into fed tax w/h? If I sound confused, it's just because I am. Oh, and there is nothing on his 1099G showing the repayment. Do I deduct it on Line 36 or just adjust the 1099G in Box2?

AnnieR

I would enter the 1099-G info just like it is on the 1099-G

Then I would enter a negative amount on 1040, Line 21 (bunny-hop then explain on the statement what it is for)

Then I would enter the Fed tax withheld on 1040 Line 62 (again bunny-hopping to the worksheet and entering amount and explanation)