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Returning Member
posted Feb 5, 2022 5:23:19 PM

Return decreased after entering 1099-G

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?

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2 Replies
Level 15
Feb 5, 2022 5:26:36 PM

You are taxed on unemployment benefits. 

Level 15
Feb 5, 2022 5:28:43 PM

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