Unemployment benefits greatly reducing tax return. Should I not claim unemployment?

My AGI is $25800 and my return was $644. Amending my return to add a 1099-g for unemployment benefits of $358 will reduce me return to $391. No taxes were withheld from the benefits. This tax rate seems high. Are these figures correct?

Unemployment benefits greatly reducing tax return. Should I not claim unemployment?fast loan

Could be. If you leave the Unemployment OFF of the return, you can expect that anything you get will be recouped later and you%26#039;d be in trouble. Unemployment Benefits can have taxes withheld if you choose so that this limited liability is reduced. It is still income, albeit unearned (but a benefit derived from EARNED income).

It also depends on your exemptions, taxes paid in, any child tax credits (if eligible) and EIC.

Go have them done somewhere if you are unsure because the last problem you need is to be in trouble with the IRS over $300.

Unemployment benefits greatly reducing tax return. Should I not claim unemployment?

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Unemploment benefits have to be claimed as income. If you don%26#039;t file them when the IRS catches up with the fact that they gave you a refund bigger than you were due you will owe taxes plus interest and penlaties.|||$358 of unemployment income is costing you $253 in taxes? Maybe you did something wrong? I would run your numbers through a free online tax program such as turbo tax. It could be that the small amount of unemployment compensation was just enough to move you into a higher tax bracket. Maybe you can find one more deduction that you missed?|||You are required to claim unemployment just like you are required to claim job income. If you don%26#039;t claim it, the IRS will eventually notify you that you didn%26#039;t and how much you owe - by that time you%26#039;ll owe much more because there will be penalties and interest added. The uc benefits have been reported to the IRS by your state, and there%26#039;s 100% chance they will notice if you don%26#039;t report it.

Of course it will cut your refund if you didn%26#039;t have tax withheld from the uc payments, or didn%26#039;t have enough withheld. That%26#039;s not an excuse to not file it.