I received unemployment last year. Now they want it back!?
I received unemployment benefits last year and now Turbo Tax tells me that I owe Uncle Sam almost $3000. Is there anything I can do to mitigate that? Thanks.
I received unemployment benefits last year and now Turbo Tax tells me that I owe Uncle Sam almost $3000. Is there anything I can do to mitigate that? Thanks.
Anonymous
yeah but that's only because they're greedy so don't worry about it too much
Christin K
Your unemployment income was TAXED AS INCOME. It's not the STATE wanting it back. The unemployment you received came from your state, and your TAX is to the Federal Government. Not the same entity at all. Sorry you had to pay tax, but it was clear enough when you received unemployment income that it would be taxed as income--it comes with such notices.
mercedes
Turbo tax needs to be updated to reflect current legislation.
STEVEN F
Unemployment is taxable, at the same rate as income from employment. Because you didn't have anything withheld, you have to pay the taxes now. You SHOULD have requested withholding, or set aside enough to pay the taxes.
Eva
Wait to file. There is a provision in the new stimulus bill to exempt the first $10,200 of unemployment. If that gets signed, it will take a week or two for the software to update. Update your software and recalculate your return once that happens. It should solve a lot of your problem. Whether your state goes along with it is another issue. The reason that you currently owe is that you didn't have enough tax withheld from your unemployment.