DianeW777
Expert Alumni

State tax filing

All of the unemployment income that was from South Carolina (SC). Unemployment compensation, taxed on your federal return, is taxable to SC if it was paid by South Carolina or received while a resident of South Carolina.

 

Since your unemployment is paid through a SC business, this means it was paid by SC. All of the unemployment received as a New Jersey (NJ) resident is taxable to SC. Enter the full amount.  SC FAQs

 

NJ would normally give you credit for taxes paid to another state on the same income, however unemployment compensation is not taxable to NJ. In this scenario you pay the tax to SC and there is no credit to receive on NJ because none of the unemployment is taxed. (NJ Tax Exempt (Nontaxable) Income)

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