Does state tax withheld as reflected in box 11 of the 1099G get reflected on it201 line 72. Irs sent me penalty letter for underpayment and it believe it is from this

[Laf923]

From what I can see it is an error on their part They are staying i didnt pay this but it os actually a voluntary withholding i chose from my unemployment check so that needs to be reflecting and would reduce the net i owe

[VolvoGirl]

The IRS is completely separate from your state return and withholding.  Or did the state send you a letter?  The IRS may have adjusted your return or added an underpayment penalty.  Check your 1040 line 38 for a penalty.  It is possible for the IRS to recalculate it and send you a refund or a bill for more.   If line 38 is blank you might have checked a box to let the IRS figure it for you.