If her return showed the unemployment income earned in MN while she was a NY resident, then yes, it would be includible in income on both state returns. Generally the resident state is able to get an "other state tax credit" on the resident state return for taxes paid on the nonresident state return as long as the income is being included on both states returns.as taxable.
Generally, you may have to enter some information on the other state tax credit form in order to generate a credit.
If she lived in NY the entire year, then she would have to claim the other state tax credit on the NY return instead of the MN return.
