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Level 2
April 1, 2022
Question

1099-G for MD

  • April 1, 2022
  • 3 replies
  • 8 views

I keep trying to file my taxes, but get an error stating that my federal tax withholding is more than half of the payment amount. I've entered the correct amounts from the 1099-G but TurboTax keeps giving me an error and won't let me file.

    3 replies

    Level 15
    April 1, 2022

    This may be an IRS issue. If your tax withheld is more than half your income reported on a W-2 form or form 1099-G the IRS may be requiring you to mail your return in so that an agent can examine it. It is unusual for your tax withheld to be that high, are you sure you reported the correct amount in box 1 and 2 on your W-2 form and line 1 and 4 on your form 1099-G? 

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    Level 2
    April 1, 2022

    Yes I entered the correct amount. We received $390 in unemployment, and $231 federal tax was withheld and $159 state tax was withheld.

    AmyC
    Level 15
    April 1, 2022

    That is a very unusual w2. You received no income from unemployment, simply paid taxes on the money. It does not fit in with the standard rules for unemployment and tax. The IRS will not accept this for e-file. You will need to mail in your return and attach your tax forms, particularly that odd ball 1099-G. You may want to contact the state and verify that your 1099-G is correct.  Call 410-260-7980. They may need to issue a corrected form to you.

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