Taxes on Unemployment Compensation

[Anonymous]

I'm 18 years old. I had a job at a fitness club that paid me about $1500 this year, but hours were cut back due to covid and we were encouraged to apply for unemployment benefits. I've entered the info on my 1099-G, thinking I might get the tax withholdings refunded since I'm exempt, but it is showing me I owe more now. I made under 12K for the whole year. I didn't think I'd have to pay. Is unemployment compensation taxed differently? 

[LeonardS]

Unemployment is taxable income.  From what you describe in your post it appears that there was no tax withheld from your unemployment compensation.  Therefore, you had taxable income for which there were no withholdings this caused your taxes to increase over what was withheld on your W-2 resulting in you owing tax when you included your unemployment compensation.

[Anonymous]

Actually, they withheld $402 federal and $196 state according to my 1099-G. Turbo tax is calculating that I'll owe another $800 on top of this. 

[JamesG1]

Was the $1,500 from the fitness club W-2 wages or 1099 income reported as self-employment income?  Self-employment income is subject to income tax and self-employment tax.

[Anonymous]

W-2

[GeorgeM777 · Accepted solution]

To follow-up on the comments from @JamesG1 and @Leonard Smith, while your unemployment compensation received in 2021 is taxable income, that amount plus your W-2 wage should not result in any tax due if their combined amount is less than your standard deduction.  Can anyone claim you as a dependent on their return? If yes, that might explain why you are seeing a tax due amount.  

If you are using TurboTax online, go back to the My Info section, and in the Personal info summary, click edit across from your name.  The page that follows will contain a question whether someone can claim you as their dependent.  Check your answer.

@Anonymous