@kozak61. According to the Office of Unemployment Compensation for PA, the following benefits are considered gross income for federal income tax purposes.
- Unemployment Compensation (UC)
- Pandemic Emergency Unemployment Compensation (PEUC)
- Trade Adjustment Assistance (TAA)
- Pandemic Unemployment Assistance (PUA)
- Federal Pandemic Unemployment Compensation (FPUC)
- Lost Wage Assistance (LWA)
Regarding the above benefits, and specifically the unemployment compensation benefit because that is what you received, the Office of Unemployment Compensation also states the following:
"These benefits are not taxable by the Commonwealth of Pennsylvania and local governments." Here is a link to the PA Office of Unemployment Compensation from which the above information was obtained.
PA Office of Unemployment Compensation
Your question raises the issue of residency because you did not indicate whether you are now a PA resident. As a way of background, although the rules vary among states, most states define a “resident" as an individual who is in the state for other than a temporary or transitory purpose. States consider a person’s “domicile" to be the place of his or her permanent home to which he or she intends to return to whenever absent from the state for a period of time. Most states claim the right to tax an individual’s income if they are believed to be a resident and domiciled in that state. However, as described above, if you are a PA resident, your unemployment compensation will not be subject to tax by PA.
In contrast to PA, NY does tax unemployment compensation. Thus, you will need to consider to which state, PA or NY, you are a resident of, and once you have made that determination, file the appropriate state tax return if necessary.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
