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New Member
posted Feb 12, 2025 8:56:55 AM

Out of state unemployment compensation

  • In 2024 I received payment of $960 for an unemployment claim I filed in Michigan in 2021 for COVID. I have now lived in Florida since 2021. Do I have to declare this payment on my federal tax return? At the time the federal government said unemployment up to $10,000 would not be taxed. How do I indicate that this payment should not be taxed by the IRS?  Michigan deducted state tax from the payment.  Should it have been taxed? Do I have to file a state return for Michigan? 

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1 Replies
Expert Alumni
Feb 12, 2025 10:11:09 AM

You do have to declare the income on your federal return if the statement reporting it is dated in 2024, as unemployment benefits received in 2024 are taxable. It doesn't matter from what year they are from. You would have to file a state tax return in Michigan. Since the income was associated with work you did there they have authority to tax it. You may not end up owing Michigan tax if the amount is small enough though.