Return decreased after entering 1099-G

[katieb87]

I had an estimated tax return of about $1,600 before i entered my 1099-G for unemployment benefits, which afterwards dropped to about $884.  Why did this happen?

[Bsch4477]

You are taxed on unemployment benefits. 

[DoninGA]

Unemployment compensation is taxable income.  Adding this increased your taxable income thereby increasing the taxes on the taxable income.