Does TWC take out state income tax on unemployment benefits? Can't find box 10b or 11 on my 1099-G
I'm trying to finish my taxes using TurboTax and got confused about my unemployment benefits from 2021. I have my 1099-G form from TWC in front of me, but TurboTax is asking for info from "box 10b" and "box 11" which don't seem to exist on my form at all. I'm wondering if this is because Texas doesn't have state income tax? Do I just leave these fields blank or put zero? I don't want to mess up my taxes and end up getting audited or something. Anyone deal with this before when filing Texas unemployment on your taxes?
17 comments
Malik Davis
Texas doesn't have state income tax, so your 1099-G from TWC won't have entries for boxes 10b and 11. Those boxes are for states that do withhold state income tax. You can just put 0 or leave those fields blank in TurboTax - it should recognize you're in a state without income tax and move forward without issues.
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Emma Wilson
•Oh that makes so much sense! Thank you. I was really stressing about this. So I just leave those boxes empty then?
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Isabella Santos
When I filed my taxes with unemployment income last year, I just left those fields blank since Texas doesn't have state income tax. TurboTax will skip over those fields once it recognizes you're filing in Texas. Just make sure you properly enter the federal tax withholding amount from box 4 of your 1099-G if you had any taxes withheld from your benefits. That's the only tax withholding you'd see from TWC.
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Emma Wilson
•Thanks! I did have some federal taxes withheld so I'll make sure that gets entered correctly. Glad to know TurboTax handles this automatically.
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Ravi Gupta
TX doesnt have income tax!!! thats one of the BIG benefits of living here lol. turbotax gets confusing cause its made for ALL states. just skip those boxes or put 0.
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GalacticGuru
This is why I HATE TurboTax!!! They make everything so complicated and confusing. They ask for all these boxes that don't apply to Texas. I had the same problem last year and ended up on hold with their customer service for 2 HOURS only to be told to just enter zero. What a waste of time. Their software should be smart enough to know Texas has no state income tax and not even ask those questions!
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Freya Pedersen
•same. i switched to freetaxusa this year. way less confusing and actually free lol
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Omar Fawaz
I had the exact same issue when filing my taxes last month. Boxes 10b and 11 relate to state income tax, which Texas doesn't have (one of the perks of living here!). Just put 0 or leave blank - TurboTax should automatically handle it correctly. One important thing to check: Make sure you've entered your federal withholding correctly from Box 4. A lot of people don't realize they can choose to have federal taxes withheld from unemployment benefits, and if you didn't elect that, you might owe taxes on those benefits when filing.
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Emma Wilson
•Thanks for the tip about the federal withholding. I did elect to have taxes taken out so hopefully I won't owe too much. This is my first time dealing with unemployment on my taxes, it's surprisingly complicated!
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Chloe Anderson
i filed my taxes with unemployment last year and i remember being confused about this too lol. dont worry about those boxes, theyre for states that take state taxes, we dont have that in texas. just put 0 or skip.
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GalacticGuru
By the way, totally unrelated to your tax question but if you ever need to contact TWC about anything to do with your benefits or the 1099-G, don't waste days trying to get through on the phone like I did. I found this service called Claimyr that got me connected to a TWC agent in less than 15 minutes when I needed to dispute an error on my 1099-G. Check out their site at claimyr.com - they have a video showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh. Saved me so much frustration!
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Emma Wilson
•Oh that's good to know! I did notice a small discrepancy on my 1099-G but wasn't sure if it was worth the hassle of trying to get through to TWC. I'll check out that video, thanks!
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Freya Pedersen
•does it cost money? seems sketchy to pay just to talk to unemployment
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GalacticGuru
•Yeah it's not free but I wasted two full days trying to get through on my own and kept getting disconnected. For me it was worth it because I needed to get an amended 1099-G before I could file my taxes. But if you don't have urgent TWC business maybe just keep trying the regular line.
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Ravi Gupta
my bf had this same question wen he did his taxes!!! its sooooo confusing how they make these tax forms the same for every state when some states dont even have income tax!!!!
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Isabella Santos
Just to clarify for anyone else finding this thread - the 1099-G form from Texas Workforce Commission will typically only have these boxes filled out: - Box 1: Unemployment compensation amount - Box 4: Federal income tax withheld (if you elected to have taxes withheld) - Box 5: RTAA payments (usually not applicable for most people) - Box 9: Market gain (not related to unemployment) Boxes 10b (state income tax withheld) and 11 (state identification number) will either be empty or not even on your form because Texas doesn't have state income tax. This is normal and nothing to worry about when filing your taxes.
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Emma Wilson
•This is SUPER helpful! Mine looks exactly like you described. Thanks for confirming that this is normal - feeling much better about finishing my taxes now.
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