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New Member
posted May 12, 2021 9:47:40 AM

Do I have to include my unemployment benefits in my state tax return, even if I already included them in my federal return? I am a New Jersey resident.

My unemployment benefits were received in NJ. I know that they are not taxed by my state, but if I don't put in the amount I received through unemployment, my gross income comes up as $0, which is not necessarily correct.

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1 Best answer
Expert Alumni
May 12, 2021 10:19:50 AM

You are correct NJ does not tax unemployment benefits.  You will enter the unemployment benefits from form 1099-G into the federal interview only.  NJ will not transfer that line/amount into it's forms.  You do not enter it anywhere in the NJ return. It is not part of NJ calculations at all.

 

 

4 Replies
Expert Alumni
May 12, 2021 10:19:50 AM

You are correct NJ does not tax unemployment benefits.  You will enter the unemployment benefits from form 1099-G into the federal interview only.  NJ will not transfer that line/amount into it's forms.  You do not enter it anywhere in the NJ return. It is not part of NJ calculations at all.

 

 

Level 15
May 12, 2021 12:13:48 PM

if your total  income from all sources was less than $10,000, not counting social security, you don't have to file a NJ tax return.

New Member
Apr 18, 2022 2:09:58 PM

I filed with TurboTax for 2020 and my unemployment was included in my state wage (line 15 on the 2020 NJ-1040).

 

This year,  TT did not include my unemployment in my 2021 state wage. Can I file an amendment for last year with the state?

Expert Alumni
Apr 18, 2022 2:56:28 PM

If you entered your unemployment benefits from a 1099-G in 2020, that amount is not included in wages (line 15 of NJ 1040).   NJ does not tax unemployment and amounts from a 1099-G would not be included on Line 15 - that line is for wages, salary, tips and other compensation and does not included unearned income (UE).    If you have unemployment amounts reported on Line 15, you will need to file federal and state amendment.    To file a state amendment, you have to start a federal amendment and make the changes there.   

 

NJ does not tax UE benefits, but the IRS does.   There was an exception in 2020 - the IRS allowed $10,200 of UE to be exempt from federal tax, but this did not have any effect on your NJ return, as those amounts are not taxed anyway.   

 

@tb2004