Adding 1099G Unemployment Compensation can cause your refund to go down for a couple of reasons:
- It increases your taxable income
- It can have a negative impact on the Earned Income Credit (EIC). This is probably where your return was affected the most. Unemployment Compensation doesn't count as "Earned Income" but it does come into the calculation of the EIC, in a negative way. You can click here to view the 2017 EIC Worksheet to see how the EIC is calculated.
