CASH APP UNREPORTED INCOME?

[Deed31]

I HAD UNEMPLOYMENT THAT WAS BEING TAXED AUTOMATICALLY.I PUT MY WEEKLY MONEY ON MY CASH APP NOW IRS SAYS ITS UNREPORTED INCOME THAT I NEED TO REPAY ALL OF IT?

[xmasbaby0]

Unemployment compensation is taxable income.   Whether or not you had tax withheld from it as you were receiving it, you were supposed to enter a 1099G on your tax return and include the unemployment on your Form 1040.    It sounds like you did not do that, so your tax return was prepared incorrectly.    You might end up having a similar problem with your state return if you are in a state with a state income tax.

Either pay the amount the IRS says that you owe, or try amending your tax return and include the 1099G to see what changes on the return.

See this TurboTax support FAQ for amending a tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

Unemployment compensation is taxable on your federal return. 

You will have to enter a 1099G that is issued by your state.

Some states will mail out the 1099G.  Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.

Enter your 1099G in Federal>Wages & Income>Unemployment

Go through the screens very carefully, making sure  to enter any federal/state tax you had withheld from the unemployment.

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-report-a-1099-g-for-unemploymen...

Most states with a state income tax do tax unemployment benefits

AL, CA, DC, NH, NJ, and PA  do not tax unemployment

[Opus 17]

Let's break this down, because you might be talking about two different situations.

1. UEC is always taxable income, it is reported on a 1099-G from the state and you must enter it on your tax return.  Any tax withheld is only an estimate.  Your actual tax is calculated on your tax return, and might be more or less than the withholding, so you might owe more tax or be due a refund.  If you did not report your UEC on your tax return, you should prepare an amended return to calculate the correct tax, and send that amount along with a copy of the amended return to the IRS office that issued the notice.  You probably also need to amend your state tax return.

2. The IRS might be looking at your Cashapp records and thinking that the money deposited on the cash app came from outside work instead of your own funds, so they think you are running a side business under the table.  In that case, you don't owe tax, but you do need to respond to the IRS notice by sending a letter explaining your situation.  Include a spreadsheet, transaction records, receipts, or other documents showing that the funds on Cashapp came from your UEC and not from an outside job.