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could repayment of unemployment benefits made in 2021 be claimed on 2020 tax return

TaxPrepPro
Level 1

My client plans to repay unemployment benefits received in 2020 by 8/31/21.  Could it be claimed on 2020 tax return?

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Just-Lisa-Now-
Level 15
Level 15

No.


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qbteachmt
Level 15

"plans to repay unemployment benefits received in 2020 by 8/31/21"

Make sure to use your IRS resources. I would read Pub 525 for how to report repayment of a prior year's Unemployment, including how to compute the two methods, and when it is reportable:

https://www.irs.gov/pub/irs-pdf/p525.pdf

"Year of deduction (or credit).If you use the cash method, you can take the deduction (or credit, if applicable) for the tax year in which you actually make the repayment. If you use any other accounting method, you can deduct the repayment or claim a credit for it only for the tax year in which it’s a proper deduction under your accounting method. For example, if you use an accrual method, you're entitled to the deduction or credit in the tax year in which the obligation for the repayment accrues."

 

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