I think something went wrong

8 replies
62 views

I filed my taxes about two days ago I had 19,000 dollars in income and 27,000 of unemployment I had a lil over 8,000 coming back with two dependants but once I added my 1099 from unemployment it took it all the way down to 700 when doing research it said that the tax on unemployment is 10% can someone explain why they took so much of my return.

AlanT222Answer

Alumni - Intuit

The tax on unemployment is not a flat tax. It is based on your individual tax rate. If you did not have any amount withheld from your unemployment, you will have to pay the amount that should have been withheld.

Further, based on your added income, your Earned Income Tax Credit went from $5,920 to about $300.

Unemployment compensation is not considered as earned income, however, it is included in your Adjusted Gross Income to determine the amount of Earned Income Tax Credit you can receive.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

AlanT222Answer

Alumni - Intuit

Further, based on your added income, your Earned Income Tax Credit went from $5,920 to about $300.

Unemployment compensation is not considered as earned income, however, it is included in your Adjusted Gross Income to determine the amount of Earned Income Tax Credit you can receive.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"