I am active duty military. My spouse worked in MD

[semperfi53184]

After entering information from the 1099-G, NY refund amount decreased significantly.  Is NY suppose to be taxing unemployment funds that were received and taxed by another state?

[MaryK4]

If she is a New York resident, New York will tax the Unemployment even if she received it from another state.

[TomD8]

Since your spouse's unemployment was taxed by both MD and NY, you'll be able to claim a credit on your NY return for taxes paid to another state.  So you won't be double-taxed.

In TurboTax, be sure to complete the non-resident MD return before your home state NY return, so that the credit is calculated and applied correctly.