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.
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