When I input my unemployment wages under the 1099 G my tax liability goes up 1700.00 However, if I delete that and input as wages, and include the tax that was withheld my liability doesn't go up at all.
Is the software not adding my unemployment withholding to my federal return? The liabillity is exactly what I paid in taxes to federal on the unemployment.
You have to enter the withholding from box 4. Maybe you are entering the 1099G in the wrong place? Unemployment has it's own spot. Sounds like you might be entering it in the wrong kind of 1099G. There are several kinds.
Federal on left
Wages & Income at top
Unemployment - Click the Start or Update Button
When you enter unemployment compensation in TurboTax there is a check box to include any federal income taxes paid on the unemployment.
Go back to the Unemployment section and edit the payment you entered. On the screen What's the total amount you received on your 1099-G? check the box Federal or state income tax was withheld on this payment.
I have box 4 filled out on the 1099G with the taxes that were withheld. why would the tax liability go up only when I input as 1099G?
As I said in the previous post, my tax bill doesnt go up when input as regular income? Also I did have federal taxes withheld from all unemployment. It seems like something is wrong with the software.
When you enter the 1099G under unemployment, does the withholding show up on 1040 line 25b? Maybe when you tried entering it as wages it wasn't fully deleted from unemployment. Or it sounds like you just aren't understanding how it works. When you entered the 1099G your income increased and the withholding wasn't enough to cover the increase in tax on all your income.