ErnieS0
Expert Alumni

State tax filing

Question 1
Enter the amount of unemployment received from New York in the New York Source Portion of the New York Income Allocation screen.

 

Awesome Tax Expert Alumni @DianeW says: "Unemployment compensation that is part of your federal adjusted gross income and derived or resulting from employment in New York State is taxable to a nonresident."

 

See: My wife and I are non-residents of New York state all of 2016 (live in Washington...

 

Question 2

Check the box "No, I don't want to include this tax credit in this tax return."

 

Unemployment is nontaxable to Pennsylvania so you cannot claim a credit for tax paid to New York on income tax is not taxed by PA.

 

PA says: if another state had income on which there was no tax paid in Pennsylvania or on which the amount of income subject to tax in Pennsylvania was reduced due to other losses that were not permitted or attributable to the other state, an adjustment must be made to reduce the
amount of tax paid to the other state to reflect the proportionate tax paid on the income subject to tax in both states.

 

See Line 4D of PA SCHEDULE G-L instructions

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