Restaurant server w2 claiming less than $4,000 in wages..simple 1099 for the unemployment. Why all of a sudden the software routes some alternative income tax credit for NJ which I didnt see get applied during the course of the questions. Further more she gets a whopping $40 state and owes $18 Federal.
Look at the amount withheld for both federal and state taxes on the W-2. With the Federal liability is concerned, I am certain the employer did not take much out from her paychecks because the wages were low for the year. However if you add unemployment to the total income, her tax bracket increased.
If she didn't pay any taxes throughout the year to NJ, she won't receive a large refund there either. She can qualify for some credits such as the EITC, however if she has no kids, that credit is very small. The NJEITC is 10% of the federal.
As it turns out it’s a software glitch filets from NJ are getting
“pass-through business alternative income tax credit”
not letting filers e-file and posting must mail transcripts. Supposedly it’s being worked on, I should’ve searched however I thought it was something new for NJ until I tried filing mine and this came up as well. This credit in particular you must belong to a participating corporation or a business owner. Guess we will wait to see when the software issues are resolved.