I am a resident of PA but I received unemployment benefits from NY. Do I file those benefits on my PA taxes or NY Taxes? Do I file them at all?

[re2boys]

Why  are you filing two state returns?

[re2boys · Accepted solution]

PA does not tax unemployment benefits, regardless of what stat is paying the benefits.

[nalahughes94]

Thank you! I'm not filing two returns I worded that wrong. I was just unsure if I had to file for the unemployment in NY. When I enter the 1099 for the unemployment on turbo tax it lowers my refund. Why is that if PA does not take taxes from unemployment? Do I even have to include that as an income on my taxes since it is not taxed?

[re2boys]

Unemployment benefits must be included in federal income tax return.  It is not included on a PA income tax return.  You are required to file a NY non-resident return if your NY income exceeds your NY standard deduction (<a rel="nofollow" target="_blank" href="https://www.tax.ny.gov/pit/file/standard_deductions.htm">https://www.tax.ny.gov/pit/file/standard_de...>).

See also:  <a rel="nofollow" target="_blank" href="https://www.rapidtax.com/blog/who-needs-to-file-new-york-state-taxes/">https://www.rapidtax.com/blog...>

[nalahughes94]

The income does not exceed the NY standard deduction. So, do I just not do anything with that 1099? I am only worried because I opted out of withholding taxes on my unemployment and I want to make sure I won't get in trouble for not paying taxes on that money.

[re2boys]

Must enter it into federal as taxable income.  It does not appear you need to file a NY return.  File a PA resident return.