Tax question

[oskar23]

Im doing taxes via credit karma and i stopped working last year in March

I made about 7k on tax form from that job and the rest from unemployment without paying 10% of taxes on 24.000.

When I do my.job first it says i have 1200 return from federal but once i add unemployment it becomes negative 1500 for federal and 1200 for state.

My logic was that it should be negative 300 for federal but i just guess thats not how tax numbers work? At the end of the day this number makes sense for what i owe based on unemployment only but just this 1200 that i should  get from my work bothers me. 

Any answers appreciated. 

[bcredeur97]

did you fill out a W-4V when you applied for unemployment? https://www.irs.gov/pub/irs-pdf/fw4v.pdf

If you chose to withhold for taxes on that form then you need to make sure that's included in your tax return because that will mean the IRS is holding money for you to pay your taxes.

If not, then yes you do have to pay taxes on unemployment benefits, I believe it's taxed like income. 

 

So for 2020 you pay $987.50 for the first $9875 you make, + 12% of any amount over that up to $40,125

So if you made $24,000 last year all included, you pay $987.50 on the first $9875. then on the leftover $14,125, you pay 12% on that,  so that's $1695

so your total federal income tax bill should be $2682.50 + state taxes if you have to pay any of that. You would of course subtract any withholdings from this number and that determines your tax return. 

not related but a quick tip:  I like to remind people that tax return is your money that the gov is holding for you all year at 0% interest rate. Ideally you want your tax return to be as close to 0 as possible and invest that money.

[oskar23]

Thanks  for reaching out. 

All i remember was i didnt want taxes to be taken out on my benefits.

As of right now after i removed w2 from my work thats what i owe on unemployment. Once i add w2 its few 100s more. Any logic behind it?