How do I calculate the "Non-Massachusetts portion" of my unemployment income, as a non-resident of Massachusetts who only filed for unemployment in my state of residency?

[ErnieS0]

The non-Massachusetts portion of your unemployment benefits would be $0 if (1) your were a nonresident of Massachusetts and (2) the 1099-G was NOT from MA.

Unemployment is taxable to both the state where you live and the state that is issuing your checks (if different), because the benefits are based on work performed in the state giving you unemployment.

Massachusetts recently updated its unemployment law to allow taxpayers with household income up to 200% of the federal poverty level to deduct up to $10,200 of unemployment compensation from taxable income on their Massachusetts tax return.

Since the Massachusetts income threshold is different from the federal income threshold, you may be eligible for a deduction on your federal tax return, but not on your Massachusetts tax return. 

TurboTax calculations are correct and up-to-date for your state. You can go ahead and finish and file your state return.

Related Resource:

• Unemployment updates

[alanajfrutkoff]

I'm sorry, could you please clarify how the NON-Massachusetts portion of my unemployment is $0 when I am NOT a Massachusetts resident and my 1099-G was NOT from Massachusetts?  Wouldn't that make the whole thing Non-Massachusetts?  

[ErnieS0]

My mistake. The non-Massachusetts portion would be the whole amount.

[alanajfrutkoff]

Ah!  Thank you!  I am not sure why Turbo Tax kept flagging it, but this makes the most sense.