Unemployment

[drich0914]

after putting in my 1099 for unemployment, it deducted $1900 from my return and I had taxes taken out. Is this right? 

[SweetieJean]

Federal withholding on UE comp is usually at 10%, but your actual tax rate may be higher.  Also, any addition to income can lower or eliminate some deductions/credits.

[AliciaP1 · Accepted solution]

As long as you entered all the information from your Form 1099-G correctly, including any withholdings reported in box 4 and/or box 11, then it is correct.  Unemployment income is taxable for tax-year 2021.

Per the IRS:

Unemployment compensation you received under the unemployment compensation laws of the United States or of a state must be included in your income. It is taxable income. If you received unemployment compensation, you should receive Form 1099-G showing the amount you were paid and any federal income tax you elected to have withheld. Some states do not mail Form 1099-G; recipients need to get the electronic version from their state's website. For more information, see Publication 525, Taxable and Nontaxable Income