Unemployment - Federal Withholding Question

[roomtodream]

This may be a silly question, but I can't really wrap my head around this.

I received unemployment in 2020, and I opted to withhold taxes. Federal taxes were withheld. So, when I add in my 1099-G, I'm wondering why, because federal taxes have already been withheld on this income, it's apart of my total income to be taxed. I'm just looking at my 2020 federal review, and it feels like I'm being hit twice with taxes there, or I'm misunderstanding something.

Thanks

[VolvoGirl]

The full amount is taxable then you get credit for the withholding like in your paychecks.  Be sure to enter the withholding when you enter the 1099G.  The withholding will be on 1040 line 25b.

[VolvoGirl]

Made a screen shot