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.
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.
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.
So if i didnt have them taken out taxes thats y my taxes been cut
That is correct. And the 10% is usually what is withheld on unemployment comp. However, as indicated above, your actual tax rate may be higher.
But i was gettingback 5940 now im getying 1840y so much
Now im getting less they took almost all of it