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New Member
posted Jun 4, 2019 4:25:21 PM

If you are full time residents of one state but received unemployment from another state do you have to file state returns in both states?

We are full time residents of Arizona, but the unemployment was from Minnesota

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1 Best answer
Expert Alumni
Jun 4, 2019 4:25:22 PM

No, unless Minnesota tax was mistakenly withheld.  Although unemployment insurance income may come from another state, it is only taxable to the state you were living in at the time you received it.  If you had MN taxes taken out, you would want to file a MN nonresident return with zero income to have those taxes returned.  Otherwise, you wil only file Arizona.

24 Replies
Expert Alumni
Jun 4, 2019 4:25:22 PM

No, unless Minnesota tax was mistakenly withheld.  Although unemployment insurance income may come from another state, it is only taxable to the state you were living in at the time you received it.  If you had MN taxes taken out, you would want to file a MN nonresident return with zero income to have those taxes returned.  Otherwise, you wil only file Arizona.

New Member
May 19, 2020 10:20:53 AM

To be clear, I was an arizona resident but lived in minnesota (non-resident) last summer.  Recieved a Minnesota w-2 for 22,000.  I have an arizona drivers license.   Where do I make my claim.

Expert Alumni
May 20, 2020 2:28:42 PM

More information may help resolve your question.  For example, was the W-2 you received for work while you lived in Minnesota, unemployment compensation you received from Arizona while living in Minnesota, or unemployment you received from Minnesota while living in Minnesota?

 

@edpenney

New Member
Apr 25, 2021 1:04:25 PM

I lived in Indiana for 2 months of 2020. Moved to Oklahoma for the last 10 months. I received all my unemployment in Oklahoma. So for tax proposes is my unemployment considered Indiana income or Oklahoma? It would seam to be Oklahoma but I'm not sure.

Expert Alumni
Apr 25, 2021 1:17:49 PM

Your unemployment income is "Oklahoma income". 

 

As @DanielV01 states above, "although unemployment insurance income may come from another state, it is only taxable to the state you were living in at the time you received it".

 

(Some states (e.g. Massachusetts) take a different view  - if your unemployment was paid out from their unemployment insurance fund after you moved elsewhere, then they consider it as taxable by them and by your new state. Oklahoma is not one of those states).

Level 1
May 13, 2021 6:02:16 PM

I lived in California; however, I received New York unemployment benefits. Do I have to pay NY income taxes? 

Expert Alumni
May 13, 2021 6:27:25 PM

Yes, if you lived in CA but received unemployment from NY state, you will need to file a nonresident NY return.   Any taxes you pay to NY will be credited to your resident CA tax return, so you won't be double-taxed.   The instructions are below, but remember to prepare the NY nonresident before your resident CA return so the tax credits get properly applied.  

 

How do I file a nonresident state return?      @kyle2smith

New Member
May 16, 2021 8:23:59 PM

I actually have this situation... I moved from Massachusetts to Louisiana halfway through the year but received MA unemployment even after moving to LA.

 

MA taxes were withheld from the unemployment checks, even when I lived in LA 2nd half of the year.

 

Didn't seem like MA was crediting it, so I have all of that income as a subtraction on my LA return (so filing total of $0 income for LA).

 

Based on the responses here, it sounds like it shouldn't be a subtraction from LA but should be credited from MA?  But MA won't credit it because it's MA source income?  What do I do?

Expert Alumni
May 16, 2021 8:42:30 PM

You will find on this website:  Learn about tax treatment of unemployment compensation ..., that Massachusetts does continue to tax the unemployment even after you have moved to another state.  Since Louisiana can tax this income also, you should receive a credit on your Louisiana return for the taxes you pay to Massachusetts on the income taxed by both states.  But that credit could be $0, especially if either of the two states have followed the Federal tax return's provision of exempting up to $10,200 of unemployment benefits.

New Member
May 16, 2021 10:12:07 PM

Got it, thank you.  So, to clarify, it sounds like I have it configured correctly as-is.  Leave my MA return normal (without credit) and mark the unemployment income as a subtraction on LA because it was income taxed by another state.

 

But also still file LA return because it's my current residence, even though it is net $0 (MA unemployment is the only income I had in LA in 2020).

Expert Alumni
May 17, 2021 3:31:19 PM

LA filing requirement for part year residents is to file LA sourced income. If you have no LA sourced income, no need to file LA return. See Individuals - Louisiana Department of Revenue.

@dumbelldoor

Level 1
Sep 8, 2021 10:14:44 AM

I have an Oklahoma-related unemployment tax question as well: I lived in Oregon until April of 2020, when I moved to Oklahoma. I received unemployment from Oregon for several months after I moved to Oklahoma (and no unemployment while living in Oregon).  Oregon taxes and federal taxes were withheld from my unemployment benefits at the time the money was disbursed. 

 

I declared my unemployment income on my Oklahoma tax return under the question that was something like "Did you earn any income from other states while living in Oklahoma?" Now it seems I owe additional tax to Oklahoma for the unemployment income from Oregon. Does this seem correct to you?

 

I have spoken to two different tax specialists who have given me drastically different answers. One said I need to amend both of my state tax returns and pay additional taxes to Oregon; the other says I was correct in reporting the unemployment income on my Oklahoma return only.  It does seem strange to pay taxes to two different states for the same income. Oklahoma has much lower income taxes so if I could only pay Oklahoma taxes that would be ideal. Thanks for your insight and expertise.

Level 15
Sep 9, 2021 4:09:44 AM

 (Edited per @TomD8 's reply):

 

 Unemployment compensation (UIC), is taxable by the state you lived in when you received the income.  So, the OR UIC is taxable  by OK. 

 

OR, unlike most states, apparently also  taxes UIC paid to non residents, so it  should have been reported on the OR return.   But, you claim a credit on your OK state return for the tax paid to OR on the UIC.

Level 15
Sep 9, 2021 6:55:06 AM

@LeliaS 

 

Unemployment compensation earned in Oregon is taxable by Oregon, even if you are now a resident of another state.  See the following:

 

"Total compensation includes unemployment compensation benefits to the extent the benefits pertain to the individual's employment in Oregon.  If unemployment compensation benefits are received by a nonresident for employment in Oregon and in one or more other states, the unemployment compensation benefits must be apportioned to Oregon using any method that reasonably reflects the services performed in Oregon."

https://secure.sos.state.or.us/oard/viewSingleRule.action?ruleVrsnRsn=20198

 

The Oregon unemployment you received as an OK resident is also taxable by OK, as @Hal_Al indicated.  You may claim a credit on your OK state return for the tax paid to OR on the income taxed by both states, so in effect you won't be double-taxed.

New Member
Oct 10, 2021 11:20:03 PM

I moved to Arizona in 2020 from California. The unemployment benefits I received are from California.

California does not charge state income tax on unemployment benefits, yet Arizona does.

Do I need to pay state income tax to Arizona for the unemployment benefits I received? Or would this fall under California, since my claims have been from California?

Level 15
Oct 11, 2021 2:56:01 AM

 

@grendaisy1039 You don't have a 1099-G from AZ.

Level 15
Oct 12, 2021 7:16:40 AM

@grendaisy1039 --

 

Arizona law is that residents are taxed on the same income they report for federal purposes.  Thus your unemployment compensation is taxable by AZ to the extent that it is reportable on your federal return.  If you file a part-year resident AZ return, you would pro-rate the income accordingly.

https://azdor.gov/individual-income-tax-filing-assistance/identifying-other-taxable-income

Level 2
Feb 16, 2022 9:06:00 AM

Hi,

 

In 2021 I received unemployment from New York State from January 2021 thru September 6th, 2021. However, I lived in New Jersey from January 2021 thru April 2021. Then I lived in New Mexico from June 2021 thru July 2021. Then I moved to South Carolina on July 29th, 2021 and I am currently living in South Carolina. I'm not sure how I should file my taxes. To be a full time resident in New Jersey and New Mexico I need to have lived there for 6 months which I did not do. In South Carolina I need to have lived here for 12 months which I have not done. 

 

 

In the "Did I make Money in other states?" section which of the above states would I include?

Does Unemployment Insurance Income from New York need to added on the "Wages & Income" section?

Do I need to file state income taxes with state of New York even though I did not live there?

Is my resident state South Carolina?

Which other states do I need to file state income taxes for?

 

Level 2
Feb 16, 2022 9:06:57 AM

Hi,

 

In 2021 I received unemployment from New York State from January 2021 thru September 6th, 2021. However, I lived in New Jersey from January 2021 thru April 2021. Then I lived in New Mexico from June 2021 thru July 2021. Then I moved to South Carolina on July 29th, 2021 and I am currently living in South Carolina. I'm not sure how I should file my taxes. To be a full time resident in New Jersey and New Mexico I need to have lived there for 6 months which I did not do. In South Carolina I need to have lived here for 12 months which I have not done. 

 

 

In the "Did I make Money in other states?" section which of the above states would I include?

Does Unemployment Insurance Income from New York need to added on the "Wages & Income" section?

Do I need to file state income taxes with state of New York even though I did not live there?

Is my resident state South Carolina?

Which other states do I need to file state income taxes for?

Expert Alumni
Feb 16, 2022 9:41:45 AM

You will file the following state returns if you had income at any time during the residency period and you meet the filing requirements.

  1. New Jersey - Part Year Resident
  2. New Mexico - Part Year Resident
  3. South Carolina - Part Year Resident - Prepare this return last!
  4. New York - Nonresident - Prepare this return first!

New York taxes nonresidents on any income derived from New York state sources.  If I am understanding your questions correctly, your unemployment was from a business within New York.  If this is correct, you will need to file a Nonresident Income Tax return for New York. 

For all part year resident state returns, you will pay tax on the taxable income you received during the residency period. 

 

Next comes the challenging part. For each state where the unemployment is taxed, you will be allowed a credit for taxes paid to another state on the same income.  You must determine the portion of the NY tax that applies to each resident state that includes the unemployment income.

  • Take the unemployment you collected during each state's residency period, then divide that by the total unemployment you received for the year to arrive at a percentage for each state.  This can be multiplied by the tax charged in each state where unemployment is part of the taxable income and there was other income besides the unemployment.

The credit for tax paid to another state on the same income will be the lesser of:

  1. the tax liability actually charged by the nonresident state, OR
  2. the tax liability that would have been charged by your resident state

If you don't have tax in one of the states, then there is not going to be a credit for that state. Review the link below if you have questions about a particular state.  You can also add any question here as you start to prepare your state returns.

@subaonyx007

Level 2
Feb 16, 2022 11:19:47 AM

@DianeW777 

1. Would I be considered a Resident of South Carolina since I lived there on 12/31/21? If so, Do I still need to submit as a part time resident of South Carolina? Because I lived there from 07/29/21 to present (Requirement in South Carolina is 1 year to be considered a Full Time Resident)

2.  I got laid off from a company located in New York State - Does this mean I need to file a Nonresident Income Tax return for New York?

3. On Turbo Tax - which section allows me to file for Part Year Resident and Non Resident?

 

Expert Alumni
Feb 16, 2022 11:43:35 AM

The answers to your questions about the state returns you need to use are as follows:

  1. You are considered a part year resident of South Carolina (SC).  Domicile is always used to determine residency, usually not time frame.
    • In SC they don't really define it, which is rare, however working there and living there determines residency.  You worked and lived there for part of the year and therefore are a part year resident.
  2. Yes. Per the instructions for New York (NY) New York does tax nonresidents on any income derived from New York state sources.
  3. After your include the necessary states in the Personal Info section you will go to the State tab and TurboTax will select residency based on your information from the federal return and you will  choose the correct status. Confirm or Change Residency when prompted.

Level 2
Feb 16, 2022 12:05:20 PM

@DianeW777  Thank you  - this is complicated so I appreciate your patience.

 

1. I will put State of Residence (On December 31, 2021) as South Carolina, right?

This would mean South Carolina would be my State of Resident then in "other state income" I would add South Carolina too? So in "other state income" section I would have South Carolina, New Jersey, and New Mexico?

 

2. Then I'm asked If I lived in another state in 2021 - should I say Yes? If I do it only allows me to add one state but I lived in New Mexico and New Jersey as Part Time Residents in 2021 - So which state would I add since I can only add one?

 

3. Then it asks me what date I became a resident of South Carolina - Do I put 07/29/21 (the day I moved into my apartment)?

Expert Alumni
Feb 16, 2022 12:34:53 PM

Of course.  Post any questions you might have so that we can assist and you can complete your return.

  1. Yes, South Carolina (SC) is your resident state on 12/31/2021 and your address will reflect that. You do not need to add SC again in the 'Other State' section. Add New Jersey (NJ) and New Mexico (NM). 
    1. NM Filing Requirements
    2. NJ Filing Requirements (click on part year residents)
  2. You can add both NJ and NM in the 'Other State' section
  3. The dates need to be reflective of how many months you lived in each state.  For three states the dates need to be reflective of that.  For SC you should put the date you began living and working in that state.

@subaonyx007