New York State changed 2020 tax return to include unemployment compensation I received. I declared this and had taxes taken out at the time of payment. Why do I owe now?

Forum|Forum|4 years ago
January 4, 2022
6 replies
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TurboTax Online

xmasbaby0

Level 15

No one can see your tax return, and no one at TT gets any information from the state when the state changes something on your return. However, New York continued to tax ALL unemployment on the state return even after the first $10,200 was waived from federal tax.

If you do not understand what NY did with your return you need to contact the state and ask them.

**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.**

rjs

Level 15

The tax that was withheld from your unemployment payments is not the tax on that income. It's just an advance payment towards the total tax that you will owe for the year, the same as tax withheld from your paycheck. Your tax return calculates your total tax on all of your income. Then it adds up all the tax that was withheld during the year, from paychecks, unemployment, or anywhere else. If the total tax withheld is less than your total tax for the year, you have to pay the difference.

Did you have state tax withheld from your unemployment, or only federal tax? State tax withheld would be in box 11 of your Form 1099-G.

msemler93-gmail-Author

Level 2

yes i have a total withheld in box 11 on my 1099-G

rjs

Level 15

So the total New York tax that you had withheld from your unemployment, plus any other New York tax that you had withheld anywhere else, was not enough to cover your total New York tax for the year. It's not specifically for the unemployment. The total tax on your tax return is calculated on all your income: unemployment plus any other income that you had. The total tax that was withheld from all sources is applied to the total tax on all your income. Since we can't see your tax return, we have no way of knowing where you might have had inadequate state withholding.