How can a claimant receive a credit on their Federal Tax return after an overpayment has been paid?
Instructions for this credit are included in the Federal Tax booklet. In past tax years the IRS has indicated if the overpayment is repaid in the same tax year that the original UI benefits were received, the taxpayer can report the net difference as income on their tax return. If the overpayment was repaid in a different tax year than when the money was received, the tax payer will have to file a Schedule A form. You should always refer to the Federal Tax instructions for directions as these requirements may have changed. If you have further questions, you should contact the IRS. All 1099 forms, by Federal rules and regulations, must include all monies paid in Unemployment Insurance benefits – even if those monies have been repaid in full. However, the 1099 does not include any amounts of money that were used to “offset” the debt; therefore the worker can not claim any “offset credits” as a repayment credit when filing his/her tax return.
Related Questions
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