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alexandria177,

 

If your state unemployment department has not withheld, or underwithheld, income tax on your unemployment compensation (typically 10% federal plus state if your state taxes those benefits), you can make "estimated tax payments" yourself. 

 

On the federal side, such payments are made on form 1040-ES.  Whether you need to pay quickly depends upon whether you will end up owing more than a $1000 come next April.  You can safely ballpark that need by taking your total untaxed unemployment you've been paid to date this year, adding it to whatever taxed income you have received to date, doubling the total, and using the table on page 7 of the 1040-ES to calculate an amount of tax.  Subtract from that what you've already paid in federal tax this year, if any, and compare the result to $1000.  If it is more, then it would be safest to send in an estimated tax payment for the difference using the second quarter 1040-ES strip in the form.  (The total income figure will likely be an overestimate as the federal unemployment supplement will be replaced by something a good deal less generous, if at all, but better safe than sorry.  I wouldn't like you to be stuck with a large interest and penalty bill for significant underpayment.)   If you cannot afford that size estimated tax payment, pay what you can afford and try to at least match the 10% that would normally be withheld and which matches the lowest federal income tax bracket rate.

 

If you care to name your state of residence, I can advise you if you will need to follow a similar procedure for your state.