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I was told that people who didnt with hold taxes on unemployment can get the money they owe to state amended and not have to pay it. Does anyone know if this is true?

If so how would i go about this?
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3 Replies
ColeenD3
Expert Alumni

I was told that people who didnt with hold taxes on unemployment can get the money they owe to state amended and not have to pay it. Does anyone know if this is true?

It depends on the state. For Federal purposes, the first $10,200 of unemployment is excluded from income. Your state may or may not follow Federal rules. 

 

In TurboTax, you can amend your state return without filing an amendment for your federal. Select your version for instructions:

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I was told that people who didnt with hold taxes on unemployment can get the money they owe to state amended and not have to pay it. Does anyone know if this is true?

if the state does not tax UC, then check the state website before filing an amended return. my state says they will handle the amendment and taxpayers shouldn't file amended returns for this issue 

I was told that people who didnt with hold taxes on unemployment can get the money they owe to state amended and not have to pay it. Does anyone know if this is true?

I haven't read about a state that had changed its tax laws to make the $10,200 tax free at the state level, so assume TT is handling it correctly. 

 

Some states never taxed unemployment previously. 

 

you'd have to look at your specific state revenue website to see how your state handles income related to unemployment. 

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