State tax filing
In order to assist you further with your question, I have prepared a mock tax return with $10,200 of unemployment as a nonresident of New York receiving NYS sourced unemployment. Please follow the steps and the screenshots that are shown below.
- Edit your nonresident New York return.
- On the page titled New York Income Allocation, enter $10,200 for the NYS portion of your unemployment (since it is from a NYS source).
- On the page titled New York Income Allocation, enter $0 for the unemployment compensation exclusion as it is fully taxable in NYS.
- Follow the remainder of your NYS nonresident return.
- On the page Let's Review Your New York Numbers, you will see that NY starts with your federal adjusted gross income and the amount taxed looks greater than the amount of your unemployment. As you may know, NYS uses the New York Income Factor when determining your tax amount. They start with all of your taxable income and tax it at the NYS rate. Then, the state uses the allocated income (unemployment) to determine your NYS Income Factor (what percentage of your income was sourced in NYS). Lastly, NYS multiples your total tax by the NY Income Factor to determine your state tax.
In addition, depending on the amount of your unemployment in 2020 and the state taxes paid on your unemployment during the year, there may be an underpayment penalty calculation on the screens that follow Step #4.
For more information on the underpayment penalty, please see Interest and Penalties.
Please comment below if you have any further questions.
