topic Do I have to file state taxes in AZ if I received unemployment from AZ but I am a full time resident in Oregon? in State tax filing

Do I have to file state taxes in AZ if I received unemployment from AZ but I am a full time resident in Oregon?

OregonResident — Sun, 06 Feb 2022 19:10:45 GMT

We moved to Oregon in 2020, but I continued to receive AZ unemployment for part of 2021. Do I have to file AZ state taxes?

I already submitted my taxes and included all the unemployment info from the 1099-G including the Arizona state code, but I only filed state taxes in Oregon. Do I need to file for AZ as well, or is unemployment accounted for under federal taxes?

Re: Do I have to file state taxes in AZ if I received unemployment from AZ but I am a full time r...

LenaH — Sun, 06 Feb 2022 19:27:58 GMT

It depends. Unemployment in the state of Arizona is taxable. However, nonresidents have to meet income thresholds from Arizona sources to be required to file.

You must file if you and your gross income is more than:

• Single $12,550

• Married filing joint $25,100

• Married filing separate $12,550

• Head of Household $18,800

If your unemployment is below the threshold, you may still want to file to get a refund of Arizona taxes paid (if any) from your unemployment.

Re: Do I have to file state taxes in AZ if I received unemployment from AZ but I am a full time r...

OregonResident — Sun, 06 Feb 2022 20:29:33 GMT

Thanks @LenaH Lena, this is helpful. The unemployment was the only "income" from Arizona, my husband or I made in 2021. We are married and file jointly, and the unemployment was less than, $25,100.

We DID, however, make income in Oregon that puts us over that $25,100. But since it is not an Arizona source it should not count towards it correct?

Also, I did not pay any taxes on the unemployment so I would not get a refund, and therefore would not see a need to file, correct?

(As a side note I have already filed Oregon state Taxes and Federal Taxes. Because I did not pay any taxes on the unemployment when I received it, I had to pay quite a bit in federal taxes when I just filed. As would be expected.)

Re: Do I have to file state taxes in AZ if I received unemployment from AZ but I am a full time r...

TomD8 — Sun, 06 Feb 2022 19:54:46 GMT

Your AZ filing threshold will only be a percentage of the $25,100.

From page 9 of the 2021 AZ Non-resident tax instruction booklet:

To determine if you meet the gross income threshold amount above*, multiply the amount by the percentage of your federal adjusted gross income that represents your Arizona gross income (income ratio shown on line 27 of Form 140NR).

You can download the AZ booklet here:

https://azdor.gov/forms/individual/arizona-nonresident-personal-income-tax-booklet

Re: Do I have to file state taxes in AZ if I received unemployment from AZ but I am a full time r...

OregonResident — Sun, 06 Feb 2022 20:24:04 GMT

Thanks @TomD8 for your advice. I really appreciate it. Can you give me an example?

For instance, if our annual income is $100,000. $10,000 was unemployment from AZ and $90,000 was income made in Oregon. What would be our AZ threshold?

Re: Do I have to file state taxes in AZ if I received unemployment from AZ but I am a full time r...

TomD8 — Sun, 06 Feb 2022 22:11:30 GMT

Divide your Arizona gross income by your federal adjusted gross income (your federal AGI). Then multiply $25,100 (MFJ) by that percentage to find your AZ filing threshold.

For example, if your AZ gross income was $10,000 and your federal adjusted gross income was $100,000, your AZ filing threshold would be $2,510.