For NJ unemployment taxes, how do I fill out state taxes for YE 2020 if moved to MD and filing full time resident of MD?

[Sam123]

Moved to MD in summer 2020. Received delayed unemployment benefits in 2020 from lost job in 2019. We moved in 2019. I sold my place in 2020 in NJ- no rental income. 

• Do I have to file NJ form as a non resident even though full time resident of MD in 2020
• Do I just file MD full time resident only as house sale would fall under federal as primary residence and meet cap gains thresholds?
• How are Unemployment benefits handled- do I pay a state tax on these as read no NJ state tax on Unemployment benefits but seems like MD has one?
  • Income is $160K- filed jointly
  • Is unemployment benefits for NJ and MD taxable?
  • What about the $300 additional payments for unemployment- taxable or not?
• Do I have to do anything for the house sale in NJ- ie fill out NJ non resident?

Any help is GREATLY APPRECIATED!!!

[Cynthiad66]

 Yes you should file a Part-Year Resident return for NJ because of the sale of the residence.  The state of New Jersey does not tax Unemployment Insurance benefits, they are subject to federal income taxes.  

Also, NJ has what is termed an exit tax.  Rather, it is a withholding tax that New Jersey requires at the closing of a real estate transfer when a New Jersey resident is leaving the state, The withholding would be the greater of 2% of the sales price of the home or 8.97% of the gain on the sale.”

[Sam123]

Questions- my understanding is exit tax does not apply for primary residence rules.

why part time if moved out in 2019 and no days in NJ in 2020?

[fanfare]

If you closed from out of state on an NJ home, at closing you were supposed to pay NJ estimated tax.

You have to file a return to get that back.

If that didn't happen, there is nothing to do.

[TomD8]

For 2020, if you were a full-year MD resident, and your capital gain was fully tax-exempt under federal law,  and you had no other NJ-source income, then it is not necessary for you to file a non-resident NJ return.

With regard to the NJ "exit tax", if your home qualified for a full capital gain tax exemption under federal law, you should file NJ Forms GIT/REP-3 and A-3128 in order to have the "exit tax" refunded.

https://www.state.nj.us/treasury/taxation/pdf/other_forms/tgi-ee/gitrep3.pdf

https://www.state.nj.us/treasury/taxation/pdf/other_forms/tgi-ee/a3128.pdf

Unemployment compensation is fully taxable by MD.