2010853
Why do I have to pay back state tax if I received unemployment
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It is possible that you will not have to pay tax on your unemployment benefits in Maryland. There is a law that passed just recently that exempts unemployment benefits from taxation for some filers in Maryland. TurboTax and most other tax software providers have not had time to apply the necessary updates to reflect this in their programs.
It is unclear how the Comptroller of Maryland will handle the processing of refunds to those who have filed their tax returns already. You can file your return as is, or wait until the necessary updates are applied in the near future.
Or did you receive a letter from MD that you owe back taxes on unemployment comp from prior years?
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