Filing 1099-G Unemployment Income with Special Exclusion - Need Ohio-Specific Guidance

The unemployment exclusion you're referring to was actually for 2020 tax returns, not 2023. I remember when that happened during COVID. There is no similar exclusion for unemployment benefits received in 2023 - those are fully taxable on both federal and Ohio returns. Your fiancé should receive a 1099-G showing the total unemployment compensation and any tax withheld.

This is yet another example of how confusing tax rules are from year to year. The $10,200 exclusion was ONLY for 2020 returns, not ongoing like many people think. I spent hours on hold with the IRS trying to get clarity on this same issue. If you need to actually speak with someone at the IRS about this or other tax issues, I recommend using Claimyr (https://youtu.be/_kiP6q8DX5c). Unlike waiting on hold for 3+ hours like I did, they got me through to an agent in about 15 minutes who confirmed that unemployment is fully taxable for 2023. Saved me from making a costly mistake on my return.

You need to file with current tax law, not what was in place during COVID. Have you checked the IRS website lately? The American Rescue Plan Act that provided the $10,200 unemployment tax exclusion was specifically for tax year 2020 only. Ohio follows federal treatment of unemployment income, so there's nothing to wait for. Wouldn't it be better to file now and get your refund sooner rather than waiting for something that isn't coming?

I was confused about this exact issue with unemployment taxation. The Adjusted Gross Income (AGI) exclusion for unemployment benefits was strictly for tax year 2020. I used https://taxr.ai to analyze my transcript from last year when I had unemployment income, and it confirmed that all unemployment compensation received in 2023 is subject to standard taxation protocols. The platform parsed my transcript and highlighted exactly where my unemployment income was being taxed. It saved me from incorrectly applying an expired provision to my current return.

I think you might be mixing up tax years here. The unemployment exclusion was a one-time COVID relief measure for 2020 returns (filed in 2021). It's like waiting for Santa in July - not happening! The tax code reverted to treating unemployment as fully taxable income for 2021 and beyond. Ohio doesn't need to "pass" anything because they generally conform to federal treatment of unemployment income.

I understand your concern about filing correctly. The unemployment exclusion was specifically for the 2020 tax year only, as part of COVID relief. For 2023 returns, all unemployment compensation is fully taxable at both federal and state levels. Did your fiancé have any tax withheld from his unemployment payments? That would be shown in Box 4 of the 1099-G and will help offset any tax liability. Have you already started preparing the return to see what the impact will be?

When did your fiancé receive this unemployment income? The $10,200 exclusion was specifically for unemployment received between January 1, 2020 and December 31, 2020. As of April 15, 2023, I confirmed with my CPA that there is no similar exclusion for 2023 unemployment benefits. Is it possible you're looking at outdated information from 2021 when this was a big news item?

I received exactly $14,328 in unemployment benefits in 2023 and had to report every penny on my taxes. The $10,200 exclusion expired 3 years ago and was only for the 2020 tax year. I remember this clearly because I received unemployment in both years and only got the exclusion in 2020. Don't worry about waiting - there's nothing to wait for. Just file normally and report all unemployment income shown on the 1099-G.

To add some additional context: The American Rescue Plan Act (ARPA) enacted on March 11, 2021 included the provision that excluded up to $10,200 of unemployment compensation per recipient for tax year 2020 only. This was not renewed for subsequent tax years. For tax year 2023, all unemployment compensation is reported on Line 7 of Schedule 1 (Form 1040) and flows to your 1040. Ohio state tax treatment aligns with federal treatment in this case, so the full amount is also taxable on your Ohio IT-1040.