Solved: Change of residency and unemployment benefits
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willx9
New Member

Change of residency and unemployment benefits

Hello

My residence was in NY from Jan to August than moved to Ohio.. I received unemployment benefits from New York and now I am working in Ohio for a NJ company.  Turbo tax is asking me to allocate my income.  I assume all of unemployment income will be taxed at the New York rate and my income from the New Jersey company will be allocated between Ohio and NJ?

 

1 Best answer

Accepted Solutions
LenaH
Employee Tax Expert
Intuit Approved!

Change of residency and unemployment benefits

It depends. The correct answer will depend on a few different factors. 

 

You will have to file a part-year resident return for New York from January - August. All of your unemployment compensation received was a benefit for working solely in New York State and would be allocated to your New York State return.

 

You will have to file a part-year Ohio return from September - December. All of your wages will be taxable by your resident state during the time you were an Ohio resident.

 

Whether or not you need to file a nonresident New Jersey return depends on the following:

  • Did you work in New Jersey? If so, then you have NJ sourced wages and will have to file a nonresident return. You may have to divide this by the number of days worked in the state. 
  • Was New Jersey state tax withheld from your pay? If so, you will need to file a nonresident return. 
  • Did you telecommute? If so, was it just due to Covid-19? New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of the COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction. Therefore, if you worked in Ohio (rather than NJ) due to the pandemic, it would still be considered sourced in NJ. 

If you did not work in New Jersey, no NJ state tax was withheld and will continue to telecommute even after the pandemic, then you will not have to file a nonresident NJ return.

 

Telecommuter COVID-19 Employer and Employee FAQ

 

The first thing you want to do is make sure you've filled out the Personal Info section correctly:

  1. With your return open, select My Info in the left-hand menu.
  2. Then, on the Personal info summary screen, please make sure your resident state (Ohio) listed under your name is correct.
  3. Then, scroll down to Other State Income, and select Edit.
  4. At the Did you make money in any other states? question, answer Yes and make sure your other part-year resident state (New York) is selected from the drop-down.
  5. Select Continue to return to your Personal info summary.
  6. Click on State on the left hand side. 
  7. Add the second state as a part-year resident. 
  8. Add the third state of New Jersey, if required. 

Please note: if you are required to file a NJ return, it is always best to complete the non-resident return first to ensure accurate calculations. 

View solution in original post

1 Reply
LenaH
Employee Tax Expert
Intuit Approved!

Change of residency and unemployment benefits

It depends. The correct answer will depend on a few different factors. 

 

You will have to file a part-year resident return for New York from January - August. All of your unemployment compensation received was a benefit for working solely in New York State and would be allocated to your New York State return.

 

You will have to file a part-year Ohio return from September - December. All of your wages will be taxable by your resident state during the time you were an Ohio resident.

 

Whether or not you need to file a nonresident New Jersey return depends on the following:

  • Did you work in New Jersey? If so, then you have NJ sourced wages and will have to file a nonresident return. You may have to divide this by the number of days worked in the state. 
  • Was New Jersey state tax withheld from your pay? If so, you will need to file a nonresident return. 
  • Did you telecommute? If so, was it just due to Covid-19? New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of the COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction. Therefore, if you worked in Ohio (rather than NJ) due to the pandemic, it would still be considered sourced in NJ. 

If you did not work in New Jersey, no NJ state tax was withheld and will continue to telecommute even after the pandemic, then you will not have to file a nonresident NJ return.

 

Telecommuter COVID-19 Employer and Employee FAQ

 

The first thing you want to do is make sure you've filled out the Personal Info section correctly:

  1. With your return open, select My Info in the left-hand menu.
  2. Then, on the Personal info summary screen, please make sure your resident state (Ohio) listed under your name is correct.
  3. Then, scroll down to Other State Income, and select Edit.
  4. At the Did you make money in any other states? question, answer Yes and make sure your other part-year resident state (New York) is selected from the drop-down.
  5. Select Continue to return to your Personal info summary.
  6. Click on State on the left hand side. 
  7. Add the second state as a part-year resident. 
  8. Add the third state of New Jersey, if required. 

Please note: if you are required to file a NJ return, it is always best to complete the non-resident return first to ensure accurate calculations. 

View solution in original post

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