Yeah I have no confidence in the state numbers. As far as I know, NY had to make legislative changes to not tax unemployment — and the program is now showing a higher refund for the NY portion, based on the changes made to federal. One of the issues is that the NY return does not pull 1099-G info directly into its return — it’s derived from the line on the federal 1040 for income. In theory, if NY wanted to tax it, the NY return would require an adjustment to federal income to add the 1099G back.
as of now though this is what NY says:
”For tax years beginning before January 1, 2022, the 2020-2021 New York State budget (Part WWW of Chapter 58 of the Laws of 2020) decoupled personal income tax from any amendments made to the Internal Revenue Code (IRC) after March 1, 2020. This includes changes made by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and any other federal changes to the IRC. Therefore, any amendments made to the IRC after March 1, 2020, will not apply to New York State or New York City personal income tax. See Form IT-558, New York State Adjustments due to Decoupling from the IRC, and its instructions.”
