Pandemic unemployment assistance (PUA) and stimulus payments are two different things. PUA is taxable to the federal government and some states.
A PUA 1099-G will increase your income. In your case, that means more tax. The $1,200 stimulus that you never received was added to your refund as a Recovery Rebate Credit. But your tax went up from $56 to $256 with the addition of PUA, so the amount you get back went down by $200.
The American Rescue Plan made the first $10,200 of unemployment income tax-free for households with income less than $150,000. TurboTax is working to update our program.
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