Unemployment compensation is taxable income. Whether or not you had tax withheld from it as you were receiving it, you were supposed to enter a 1099G on your tax return and include the unemployment on your Form 1040. It sounds like you did not do that, so your tax return was prepared incorrectly. You might end up having a similar problem with your state return if you are in a state with a state income tax.
Either pay the amount the IRS says that you owe, or try amending your tax return and include the 1099G to see what changes on the return.
See this TurboTax support FAQ for amending a tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...
Unemployment compensation is taxable on your federal return.
You will have to enter a 1099G that is issued by your state.
Some states will mail out the 1099G. Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.
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.
https://ttlc.intuit.com/community/entering-importing/help/where-do-i-report-a-1099-g-for-unemploymen...
Most states with a state income tax do tax unemployment benefits
AL, CA, DC, NH, NJ, and PA do not tax unemployment
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
