DuvallWheeler, LLP


2017 – 07/28

Timing matters. A taxpayer receiving unemployment benefits must claim them as taxable income for the year, even if it’s later found that the taxpayer wasn’t entitled to benefits and is required to repay the amount. To avoid taxes, benefits must be repaid within the calendar year received. In 2012, one man received unemployment benefits of $3,360 and later that year he was deemed ineligible. In 2013, he repaid the benefits. But the U.S. Tax Court found that failing to repay the benefits in the year received rendered the amount taxable for 2012. (TC Memo 2017-143)