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I receive unemployment benefits as well as the extra pandemic amount. Taxes were taken out of the entire amount paid. Will I be taxed again? Or owe this back to the state?

Was the $600 unemployment stimulus supposed to be taxed?
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3 Replies
rjs
Level 15
Level 15

I receive unemployment benefits as well as the extra pandemic amount. Taxes were taken out of the entire amount paid. Will I be taxed again? Or owe this back to the state?

Yes, the $600 additional unemployment is taxable, the same as regular unemployment benefits. On your tax return for 2020 you will report as income the full amount of unemployment that you received, and you will get credit for all the tax that was withheld.

 

I receive unemployment benefits as well as the extra pandemic amount. Taxes were taken out of the entire amount paid. Will I be taxed again? Or owe this back to the state?

 

Unemployment compensation is taxable on your federal return.  Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment

You might need to get your 1099G from the state’s unemployment site.

 

STATES THAT TAX UNEMPLOYMENT BENEFITS

 

AZ, AR, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, ME, MD, MI, MN, MS, MO, NB, NM, NY,NC, ND, OH, OK, OR, RI, SC, UT, VT, WV, WI

 

 

 

Unemployment compensation is taxable on your federal return.  Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment.  You might need to get your 1099G from the state’s unemployment site.

 

STATES THAT DO NOT TAX UNEMPLOYMENT BENEFITS on the state return

 

AK, CA, FL, MT, NH, NJ, NV ,PA, SD, TN, TX, VA, WA, WY

**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.**

I receive unemployment benefits as well as the extra pandemic amount. Taxes were taken out of the entire amount paid. Will I be taxed again? Or owe this back to the state?

All the income is taxable.

 

On your tax return, you will list all your income for the year (including jobs, unemployment compensation, cashing out investments, and side gigs), and all your tax payments (including withholding from your jobs and your unemployment checks).  Your total taxes will be calculated, and if your taxes paid are less than your taxes owed, you will owe an additional payment, and if your taxed paid are more than your taxes owed, you will get a refund. 

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