I’m an 18 y/o dependent college student who collected pandemic unemployment due to job closure. They are trying to tell me I owe almost $700 and I’m freaking out. When I applied for the unemployment I opted for them to take Max amount of taxes out , my friends did the same and even though they collected for longer they all owe less. I was just looking at the tax info unemployment sent and they are saying they paid me 8800 when it was actually 5500. I also never received a stimulus check how do I go about this I literally barley have enough money to pay for my books and living expenses.
Slickterp2021-02-22T03:26:20Z
Then contact them and find out why the are overreporting. Dependents do not get stimulus checks.
You're taxed on ALL of the unemployment, the normal state amount and the federal pandemic supplement, and this gross total should be shown on your 1099G. box 1. Any withholding would be in box 4. Not likly box 1 is wrong, but if it is, contact UC and have it corrected. Your tax is calculated on box 1 plus any other income you had that year. BOx 4 is applied to that.
Since you are a dependent, you are not eligible for either of the first two stimulus payments.
Look at your unemployment history of payments. If you really did only receive $5500, contact your state for a correction but even if you don't get that, only include on your taxes $5500, not $8800 - a 1099G is informational.
But make sure that you really did not receive the $8500. If you don't get a corrected, 1099G is 6+ months you will get a letter from the IRS that requires you to prove the $5500, not $8800. It's called a CP2000 letter. Do not ignore it when it comes.
Your taxes are related to you, not to other people. Your taxes are based on your total income, not one component like unemployment. It might not even be unemployment not withholding even that is causing the tax withholding underpayment. It might be your job. Or if you held two jobs during the year and you didn't mark your W4 with the send job, that is very likely the issue.
You are a dependent,. You don't get a stimulus check. Support yourself and you can in the future. Trust me, a few pennies that are being thrown around is no "stimulus".
If you barely have enough money, then you will need to work more hours between now & april 15th when the $700 is due, reduce your expenses, or create a payment plan with the IRS. - It's about $88 a week. Do odd jobs for 6 hours a week to make it up the money, if needed.
For dependents, unemployment compensation is unearned. If it is the only income you had, only the first $1100 would be untaxed. If you also had wages during 2021, that drops to $350.
If you did have money withheld, verify that you entered this into the tax program when you entered the 1099.
As a dependent you were not eligible for a stimulus check, so you not receiving a stimulus was correct. I think the maximum amount of taxes withheld from unemployment is 10%, which I almost always comes up short (most people are taxed at at least 12%). But you also had a job until it closed, and it looks like you didn’t have enough withheld there either. I’m assuming you’re using a tax preparation software program, and if you plugged all the numbers in correctly, they are generally pretty accurate. If you owe money, you can make a payment plan with the IRS and pay in installments rather than a lump sum. You could also talk to your parents about floating you a loan to cover your IRS debt and then pay them back.