You will file the following state returns if you had income at any time during the residency period and you meet the filing requirements.
- New Jersey - Part Year Resident
- New Mexico - Part Year Resident
- South Carolina - Part Year Resident - Prepare this return last!
- New York - Nonresident - Prepare this return first!
New York taxes nonresidents on any income derived from New York state sources. If I am understanding your questions correctly, your unemployment was from a business within New York. If this is correct, you will need to file a Nonresident Income Tax return for New York.
For all part year resident state returns, you will pay tax on the taxable income you received during the residency period.
Next comes the challenging part. For each state where the unemployment is taxed, you will be allowed a credit for taxes paid to another state on the same income. You must determine the portion of the NY tax that applies to each resident state that includes the unemployment income.
- Take the unemployment you collected during each state's residency period, then divide that by the total unemployment you received for the year to arrive at a percentage for each state. This can be multiplied by the tax charged in each state where unemployment is part of the taxable income and there was other income besides the unemployment.
The credit for tax paid to another state on the same income will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
If you don't have tax in one of the states, then there is not going to be a credit for that state. Review the link below if you have questions about a particular state. You can also add any question here as you start to prepare your state returns.
@subaonyx007
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