Pennsylvania state taxes are Massachusetts unemployment benefits taxable income for Pennsylvania state income form PA-40?

Forum|Forum|1 year ago
March 15, 2025
3 replies
45 views

Also, Can I claim an out of state tax credit on for PA Schedule G-L for the tax I paid to Massachusetts for Massachusetts Unemployment Benefits received in 2024?

Vanessa A

Level 15

No, PA does not tax unemployment benefits so it would not be taxable income in the state of PA. You would would not be able to claim a credit for it, since it is not considered taxable income in the state of PA.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Ciao4Author

Level 4

Just want to clarify,

Massachusetts Unemployment Benefits received are taxable income compensation to Massachusetts State.

Even though I pay out of state taxes to Massachusetts on the Massachusetts State Unemployment Benefits which is considered income compensation in MA, I cannot take an out of state tax credit on Pennsylvania Schedule G-L because Pennsylvania does not considered unemployment benefits, regardless of the state source, as taxable income compensation?

KeshaH

Level 11

Correct, the credit for taxes paid to other states is a way for states to eliminate or reduce double taxation. Since the unemployment compensation is not being taxed in both states, you wouldn't qualify for the credit.