Are unemployment benefits received from DC taxable on the state level by a Virginia resident?

mslcpa — Thu, 06 Jun 2019 05:29:58 GMT

Virginia residents are not required to file a DC return for wages earned in DC due to reciprocity laws -- does this apply to DC unemployment benefits as well?

Unemployment benefits are includable as income on your fe...

IreneS — Thu, 06 Jun 2019 05:29:58 GMT

Unemployment benefits are includable as income on your federal return but not on your VA return. TurboTax will automatically subtract the amount from your VA taxable income.

DC and VA have a reciprocity agreement--an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns in the future. It does not pertain to the taxability of income.

Unemployment benefits are usually reported on Form 1099-G. To enter them in TurboTax, please follow these steps:

Click on Federal Taxes > Wages & Income. [In TT Home & Biz: Personal > Personal Income > I'll choose what I work on.]
Scroll down to the Unemployment section and click on the Start/Revisit box. (See Screenshot #1, below.)
On the next screen, select Yes, we received unemployment or paid family leave on a 1099-G and click Continue. (Screenshot #2.)
You will be prompted to enter the information reported on your 1099-G. Continue through the screens, entering the requested information.

topic Are unemployment benefits received from DC taxable on the state level by a Virginia resident? in State tax filing

Are unemployment benefits received from DC taxable on the state level by a Virginia resident?

Unemployment benefits are includable as income on your fe...