PA does not tax unemployment benefits, regardless of what stat is paying the benefits.
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?
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_deductions.htm</a>).
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/who-needs-to-file-new-york-state-taxes/</a>
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.