Total unemployment benefits received is given in a gross amount, but 10% was withheld for tax - do I enter gross unemployment amount or just what I recieved?

[Anonymous]

I withheld 10% for taxes, but was hit with drastic change on my return after entering all income sources.  Same percentage of taxes taken from W-2 work, but my refund went negative after entering UI.  The math makes it seem like I didn't pay ANY taxes on my unemployment, so wondering if it's asking for what I received (after withholding) or the gross unemployment amount (before withholding).

[BESEnrolledAgent]

You will enter your GROSS Unemployment Benefits.

Keep in mind that the new legislation from the American Rescue Plan excludes from income up to $10,200 of unemployment compensation paid in 2020; if your modified adjusted gross income (AGI) is less than $150,000.

https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation

However, only certain states allow the same benefit.  Other states consider that income taxable.

https://www.cnbc.com/2021/03/30/10200-unemployment-tax-break-american-rescue-plan-states-giving-the-...

[Anonymous]

Thanks for that. Entering gross amount makes sense, but after I do add gross amount, my tax payment goes up as if I didn't pay ANY taxes on my unemployment income, even though I withheld 10%. 

Very aggravating, as I suspect my unemployment, along with my wife's income has pushed our tax rate higher.

[NCperson]

you enter the numbers EXACTLY as they are on the form - do not overthink it!