Filing state tax return on unemployment payed by one state while living in a different state.

[kms1881]

Hi, I'd like to jump in because I'm still confused. I was working and living in California from 1.1.20-3.12.20 when the shut down happened. I work in the theater so our show was suspended & I started to collect unemployment in California. I moved back to NY on 4.1.20 & collected unemployment in California for the rest of the year while living in NY. Do I need to enter in my California unemployment wages as New York Resident Income for the amount I received while living in NY? Thanks very much for your patience!

[ThomasM125]

You will enter the unemployment income on your federal tax return, and it will flow down to your New York return automatically in TurboTax and be taxable in New York.

However, you will also be asked to enter the amount of that income you earned while in California. When you enter that, your New York income tax will be reduced by the percent of income you earned while in California. 

[Iflifish]

I have a similar question. I lived in New York for the whole year but collected unemployment from nebraska. Do I file a non resident form for Nebraska? Or do I just file in New York 

[Cynthiad66]

You would only need to file a Nebraska return if they withheld taxes from Nebraska.  Unemployment is a Federal Income.

[TracyGS]

I moved from California to Georgia 11/2019. I received employment from CA through 2020. I understand CA doesn't tax Unemployment and I do not have to file as a nonresident, but do I have to pay Georgia taxes on the unemployment?

[DoninGA]

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@TracyGS wrote:

I moved from California to Georgia 11/2019. I received employment from CA through 2020. I understand CA doesn't tax Unemployment and I do not have to file as a nonresident, but do I have to pay Georgia taxes on the unemployment?

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Since you were a Georgia resident for all of 2020 your income on a Georgia state tax return, Form 500, is the federal AGI from the Federal Form 1040 Line 11.

[alexismancha]

Hi, I also have a similar question (sorry if I'm being redundant). I have only lived and worked in Arizona for the year of 2020, but I collected unemployment from Colorado durning 2020. Do I need to pay state taxes to AZ or both CO and AZ?

[DawnC]

Both.  If you lived in Arizona all of 2020, you are a full-year resident of Arizona, but you need to file a non-resident return for CO if you received enough CO unemployment to file a tax return.  You need to check the box for ''Other State Income'' in the personal information section.     How do I file a nonresident state return?   TurboTax will determine if you need to file the return or not.  Just enter the UE income on your federal return.  

@alexismancha

[jkang88]

So I earned all my unemployment (from massachusetts) while living in California. I have a nonresident application in MA that declares I earned $0 of my unemployment in MA. In final review, turbotax says:

your unemployment witholding ($xx) should not be greater than your unemployment income 0

Should I just ignore this error? I am basically just claiming this state tax back right?

[TomD8]

@Critter-3 wrote "You ONLY file AZ."

Not correct.  Colorado Code 39-22-109 states:

"Severance pay, paid-out sick and vacation leave pay, disability pay and unemployment insurance is Colorado-source income to the extent that the income is attributable to employment in Colorado regardless of whether the person is a resident when the benefit is paid."

https://casetext.com/regulation/colorado-administrative-code/department-200-department-of-revenue/di....

As @DawnC stated, you must file in both AZ and CO.

[Koin299]

I can't read all of these threads so I apologize if this scenario was discussed already. I moved from Michigan to Arizona in June 2020. I received MI unemployment from May 2020 to September 2020. How do I go about filing for this? Do I just file on my MI return what I received while in MI and put the amount I received while in AZ (even though I received it from MI) on my AZ return?

[TomD8]

@Koin299 asked: "Do I just file on my MI return what I received while in MI and put the amount I received while in AZ (even though I received it from MI) on my AZ return?"

Yes, that is exactly what you do.  Michigan's instructions for Line 11 of Michigan Schedule NR state that unemployment compensation (along with several other types of income) "is allocated to the state you lived in when you received it."

https://www.michigan.gov/documents/taxes/Schedule_NR_711867_7.pdf

(Note that several states do tax former residents on unemployment earned while they were a resident, so this answer would not apply to all states.)

[PM1960]

I moved May 2020 from Ohio to Michigan.  I received Ohio unemployment.  Both Ohio and Michigan have the $10200 exemption on unemployment for 2020.  However, while it is not included in my federal return or ohio return, TT Michigan State is including my unemployment as taxable income.   Why?

[TomD8]

@PM1960 -- The Michigan tax website says:

 For the federal income tax return, total unemployment compensation is reported on Line 7 of federal Form 1040 Schedule 1: Additional Income and Adjustments to Income. The federal unemployment exclusion is reported on line 8 of the federal Form 1040 Schedule 1.  The net taxable unemployment compensation from federal Form 1040 Schedule 1 is included in federal AGI and is carried over to the Michigan income tax return without the need for any further adjustment on the Michigan return.

https://www.michigan.gov/treasury/0,4679,7-121--556084--,00.html

[Cynthiad66]

The net taxable unemployment compensation from federal Form 1040 Schedule 1 is included in federal AGI and is carried over to the Michigan income tax return without the need for any further adjustment on the Michigan return.