I already paid taxes on my unemployment. Why is my refund amount reduced?

[VolvoGirl]

You didn't pay the taxes.  You had taxes withheld.  That was just an estimated amount.  When you added your unemployment to your other income you did have enough withholding to cover the tax liability on all your income.

[SweetieJean]

Taxes are typically withheld from unemployment comp at a 10% rate, but your actual tax rate is likely higher.