Why did my refund go down so much after putting in my unemployment?

[dannimatt4]

Did the extra 600 make that big of a difference?

[SweetieJean]

Unemployment comp is taxable, but you may not have had anything withheld from it. Also, any increase in income can lower or eliminate some deductions/credits.

[teresamorgan0301969]

Hello, @SweetieJean 

Can you be more specific?

Thank you,

Teresa M. 

[SweetieJean]

As an example, EIC is calculated on both (1) earned income and (2) AGI. You then get the lesser of the two.  In addition, it is calculated on a "bell curve." That is, it goes up as your income goes up to a certain point, but then starts to come down after.

Also, as your income goes up, you can move into a higher tax bracket. As for Unemployment Comp, typically there is either 10% withholding on it or none at all.  But if your actual tax rate on your total income is more than 10%, it "eats away" (reduces)  at the refund that was there before you entered the Unemployment Comp.