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Why did my refund decrease after I entered my unemployment form 1099-g? Income tax (both Fed and State) was already withheld so how is it that I am losing more money?
I was only unemployment for approximately 3 months so this does not seem right.
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Why did my refund decrease after I entered my unemployment form 1099-g? Income tax (both Fed and State) was already withheld so how is it that I am losing more money?
Withholding by one income source is only an "estimate" of the tax due on the taxable income received from that one source. However, when income from one source is combined with your income from all sources, your total tax liability may exceed the total tax withheld independently by each of those separate income sources.
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Why did my refund decrease after I entered my unemployment form 1099-g? Income tax (both Fed and State) was already withheld so how is it that I am losing more money?
In other words, they took an estimated tax amount but the actual tax was more so you owe the difference.
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Why did my refund decrease after I entered my unemployment form 1099-g? Income tax (both Fed and State) was already withheld so how is it that I am losing more money?
Yes. Unfortunately, that is a surprise for many people.
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Why did my refund decrease after I entered my unemployment form 1099-g? Income tax (both Fed and State) was already withheld so how is it that I am losing more money?
Unemployment withholding is typically only 10%, which is not enough for most folks.
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