Question

If I had taxes withheld from my unemployment earnings, why does my refund amount still drop so drastically? This makes my unemployment earnings at a 22% tax rate.

Forum|Forum|5 years ago
January 22, 2021
1 reply
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The state (Texas) withheld 10% to go towards taxes. While I understand that may not have covered all of it, why would the effective rate end up being over 22%?

TurboTax Premier Online

M

MAK70

The tax rate is based on the total income, not just the unemployment income as a category so it depends on how much other income you had during the year. In general, the only income that has a different rate is capital gains. Also, please remember that if you have not entered all of your information, it can change as you add deductions.