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It sounds like you chose to have no federal tax withheld from your unemployment benefits and only had some state tax withheld. Your 1099G for unemployment does not show a "refund" amount---it shows how much tax was withheld. Depending on how much other income you received in 2023, you *might* receive a state refund. Many states tax unemployment benefits. And there is federal tax on unemployment.
Enter the amounts shown on the 1099G. It would be unusual to have local tax withheld from unemployment benefits. When you enter the amounts from the 1099G, just do not enter anything for federal or for local tax--leave those spaces blank.
Unemployment compensation is taxable on your federal return.
You will have to enter a 1099G that is issued by your state.
Enter your 1099G in Federal>Wages & Income>Unemployment
Go through the screens very carefully, making sure to enter any federal/state tax you had withheld from the unemployment.
@ammar_al3ani_93 wrote:
In form 1099-G there is only the state income tax refund amount but for the federal tax withheld is zero.
So are you sure it's for Unemployment? What box is the amount in?
1099G Box 1 is for Unemployment
1099G Box 2 is for a prior year state refund
They get entered in different places.
Enter a 1099G for a State refund
Federal
Wages & Income
Scroll down to Other Common Income
You might need click on Show More to expand the section
Then it's the first line for Refunds Received for State/Local Tax Returns - Click Start or Revisit
You do not want the next line that says Other 1099G Income
A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sales tax. You got a deduction benefit for it so now you have to include it as income. If you took the Standard Deduction it is not taxable and you don't need to report it. Check your 1040 line 12 to see which deduction you took.
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