Repaid Unemployment Benefits

[littleman]

A taxpayer received uemployment compensation from the State of MN in 2005 that she reported on her 2005 Federal Tax return. She did not receieve unemployment compensation in 2006. In 2006, the State of MN informed her that she received benefits in excess of what she was qualified to receive for 2005. She repaid benefits of $900 in 2006.

Can she include the amount repaid in 2006 on her 2006 tax return or does she need to amend her 2005 tax return?

[sea-tax]

Littleman- there is an excellant discussion on this on page 3/21 of TTB delux edition.

To answer your question Yes to part 1 no to part 2.

The amount is deducible if less than 3k on the sch a subject to 2% misc deductions on 2006 return