Live in NJ, worked in NY - treatment of unemployment comp question

[inquisitiveman]

Hi,

My son is a resident of NJ, worked in NY.

In 2020, had 3 months income from working at job in NY and then 9 months of NY unemployment comp.

I prepared NY nonresident income taxes, NY unemployment compensation is taxable, don't like that, but understand, calculation straightforward.

Now, on to NJ resident return, credit for income taxes paid to NY is supposed to be: NY income taxes to not include income from NY unemployment comp or taxes on NY unemployment comp. 

So - question is - how do you calculate NY income taxes to not include NY unemployment comp and taxes on NY unemployment comp?

Thank you in advance.

[MaryK4]

You are going to have to use a fraction to determine the tax on the unemployment. 

1. Add the wage income and unemployment income= total income
2. Divide the unemployment income by the total income= fraction
3. Apply the fraction to the total tax paid to New York.-- this is the tax to exclude.

You will be able to get the amount of tax from the New York state tax summary page.

[inquisitiveman]

Hi Mary

Thank you for your response and your guidance.

Regards,

inquisitiveman