Repayment of prior year Unemployment benefits in 2025

Forum|Forum|4 months ago
February 23, 2026
2 replies
18 views

I have a client that had unemployment in 2021 of $23,000 but repaid $10,000 in 2025. I redid the calculation for 2021 if she had $13,000 in employment (23k -10k). Based on the repayment, the client tax liablity changed to a $2100 savings. How do I get the $2,100 back? Her 2025 has $0 taxable income. She a small $5000 pension and social secuity in 2025.

Thanks,

John

ProSeries Basic

GodFather

Intuit Community Champion

Might be worth calling the IRS and see if there are any options. You're beyond the window to be able to amend the return...but see if you get a sympathetic rep on the phone.

JOHNNYCPAAuthor

Level 4

Godfather,

is this a claim of repayment per irc 1341?

i have to return the favor.

john

rbynaker

Level 13

You should be fine. See Pub 525 (2025 is not final yet so I'll post the draft):

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

Read the section on Repayments starting on page 37 (PDF page 38). It should flow through the 2025 return as a refundable credit on Sch 3 Line 13b > 1040 Line 31.

Rick

Skylane

Intuit Community Champion

Yes, repayment. Based on your description, doesn’t sound like it’s going to have a happy ending….. she repaid the money in 2025. SOL.

If at first you don’t succeed…..find a workaround

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