I was just wondering what would happen if I just left out my unemployment information. I’m not sure if I’ll get in trouble for that or if it isn’t a big deal.
Yes, it would be a big deal. Unemployment is fully taxable for 2021. Leaving out income you received in 2021 is a problem---do not do it. The state has already told the IRS that you received unemployment so the IRS expects the income reported on your tax return to match the income that has been sent to it by your employers and the state.
UNEMPLOYMENT COMPENSATION
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.