I need some help with California State Unemployment...?

Question

Ok, im getting unemployment. And im not checking the box to get taxes taken out. What will happen next year at tax time? Should i be checking that box? What does it affect? I wont have to end up paying in the end will i? What do i do to get the best (Biggest) Refund from taxes. And just a side question. How do i collect all my W-2s? I just got out of the Military, I worked at walmart and i got unemployment all in one year. What do i do when i get them? Who should i have do them? Ill send a check for 5 dollars to whoever answers all of these. But wait, Theres more! You'll be my best friend...

What do i do to get the most amount from my return? should i start checking that tax box? Will I end up getting it back in my return? Or is it going to nowhere?

Answer 1

When you file your tax return, the unemployment will be listed as income and you'll owe tax on it. So if you don't have it deducted now, then you'll have to pay it when you file unless you have a big enough refund to cover what you owe on the unemployment - then the taxes for the unemp comp would come out of whatever refund you would otherwise get.

So yes, check the box to get taxes taken out. Depending on how much you've gotten, you might already be into having to pay for this year.

A refund is just the return of whatever you overpaid, just like getting change at a grocery store if you give them a $20 bill and only bought $15 worth of items. So getting a big refund isn't getting anything extra, it just changes whether you get it at the end, or spread out through the year in your checks.

If the military and WalMart have your current address, they will send you your W-2's sometime in January. If they don't have your current address, send it to them right away. You'll also get a form from the unemployment people that you'll need for taxes, but unless you move again, they'll have the address to send it to. When you get the forms, either buy something like TurboTax, or take all the paperwork to a tax preparer, or come back and post here again and somebody will walk you through filling out the forms. Your federal return won't be all that complicated. Depending on where you live, you might also have to file a state and/or local return.

Answer 2

Unemployment is taxed as ordinary income. You have the option of having tax withheld from your unemployment benefits or not. Since your unemployment will be considerably less that your former wages (about 55%), you might find it tough to have it reduced more by taxes.

If you expect to find a new job shortly and expect to get a tax refund, you will probably be OK with no withholding because there will be enough withheld from the wages you have already received. If you want a big refund, then check the box for withholding. Your former employers and California EDD will mail you your W-2s and 1099s.

Answer 3

The unemployment checks are counted as income. If your w-2s and the unemployment add up to more than $8750, you will have a filing requirement because you will have some taxable income. The first $7-8000 is taxed at 10%.

If you have enough withheld from the w-2s, it may be enough to cover what you owe. If you don't, you will owe.

Answer 4

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