Taxed Unemployment Causing Me To Owe

[andkupstas]

I received a relatively small amount of unemployment income and opted to have both federal income and state taxes withheld from my payments. That's reflected correctly on my 1099-G and what I'm entering into my return on TT, but as soon as I enter it, it causes my tax obligation to go up, causing me to owe even more on my federal. I've already had the 10% federal withheld, so I'm not sure why the system would calculate that I owe more.

[DanP0428]

The unemployment is added to your other income and taxed at your normal tax rate.  If that is higher than 10% you will owe additional taxes on it.

[ErnieS0]

Unemployment is part of your total income, as @DanP0428 says in a most excellent response. 

Many people are taxed at a much higher rate than 10% so the amount withheld is often not enough to cover the whole tax when unemployment is added into your other income.

For example, the 12% bracket (after deductions) starts at $9,951 for single filers and $19,901 for married.

TurboTax Tax Bracket Calculator 2021