I understand the rules have changed regarding unemployment income. I received $6900 in UI but had taxes taken out ($1120). But upon putting in the info in my tax software, it does not allow me to add in the taxes that were paid.

Is this correct? Please advise.

Thank you!

RK

“ I received $6900 in UI but had taxes taken out ($1120).”---> There are non-taxble and are exempt part of 2010 unemployment benfits; the first $2400 that you receives as part of unemployment benefits are exempt and can be deducted from your tax return. However, the rest of the unemployment benefits are, in this case $4,500; $6,900-$2,400=$4,500.