Tax question, unemployment tax?

You have to respond to the IRS letter. If you can get a physical person involved, better for you. A taxpayer (cash basis) is required to report income received (in the year received) on Form 1040. You may not combine previous years income with current years income to report on your current years tax return. You received a notice from the IRS because the IRS received a copy of the Form 1099-G reflecting Unemployment Compensation paid to you for the previous year. You neglected to report it. The IRS verifies income they received from various sources and what you reflect on your Form 1040. You have to file a Form 1040X, Amended U.S. Individual Income Tax Return for the previous year to reflect the Unemployment Compensation received for that year. You must do the same for the current year reflecting only the amount of Unemployment Compensation received for the current year. Good luck.

Unemployment is taxable income. searching on how a lot to procure, and some thing of your individual difficulty, they'd have deducted more desirable than you owe. if so, you'll get any overpayment refunded.

No, but you will have to revise BOTH years tax returns and re-file them PROPERLY.

Whether you will need to pay more depends on too many details for us to predict.