Artículo Repayment of unemployment compensation.. Repayment of unemployment compensation.

id="en_US_2025_publink1000172036"> Repayment of unemployment compensation. If you repaid in 2025 unemployment compensation you received in 2025, subtract the amount you repaid from the total amount you received and enter the difference on Schedule 1 (Form 1040), line 7. On the dotted line next to your entry, enter “Repaid” and the amount you repaid. If you repaid unemployment compensation in 2025 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 16, if you itemize deductions and the amount is more than $3,000. See Repayments , earlier. Tax withholding. You can choose to have federal income tax withheld from your unemployment compensation. To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. Tax will be withheld at 10% of your payment. . If you don’t choose to have tax withheld from your unemployment compensation, you may be liable for estimated tax. If you don’t pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. For more information on estimated tax, see chapter 4 . . Supplemental unemployment benefits. Benefits received from an employer-financed fund (to which the employees didn’t contribute) aren’t unemployment compensation. They are taxable as wages. For more information, see Supplemental Unemployment Compensation Benefits in section 5 of Pub. 15-A, Employer's Supplemental Tax Guide. Report these payments on line 1a of Form 1040 or 1040-SR.