Nonresident New York Income Allocation for Unemployment

[BigRedABC]

Hello,

I have two questions.

1. I was not a New York State resident in 2020 at all. In 2019 I was a resident of New York and then moved to Connecticut, however my employer was New York based. I lost my job at the end of 2019, however my former employer never changed my address. So, when I received my W2 it had the New York address with state and New York City taxes taken out.

I began receiving Unemployment Insurance from New York State in 2020 while living in and being a Connecticut resident. While receiving this Unemployment I made quarterly Estimated Tax Payments for the Unemployment to Connecticut each quarter I was receiving the benefits. Once I got a new job later in the year I cut off the Unemployment Insurance. I am filing a nonresident New York State return and will then file a Connecticut return and then have to do another state as I moved to another state for the new job.

My question is this: For New York Income Allocation, it has the total amount I received in Unemployment listed under Federal Income and asks how much of this was from "New York Source Portion". Do I put 100% of this amount in this box since it was from New York State or do I put in 0 because I was residing in CT and paid the CT quarterly estimated tax payments? So if I revived $100 total in Unemployment, would I enter $100 or $0 in the box?

2. Second question is the next section, which asks "Enter the amount of federal income that was derived from New York Sources. If non , enter zero." It lists here, "Unemployment Compensation Exclusion". Federal Income -$10,200 (this is a negative number). What do I enter in the ?New York Source Portion"? $10,200, $0, -$10,200?

I started with New York and then will be doing Connecticut and the third state. Please answer the above and let me know the best way to answer this.

Thank You.

[ErnieS0]

All income connected with your New York job is taxable to New York, even if you resided in Connecticut at the time you received it. Your W-2 income may be the amount you earned in NY in 2019 but paid in 2020 due to payroll periods, or accrued vacation, sick time, etc. All of that is considered NY source income because it is from “a business, trade, profession, or occupation carried on in New York State.”

Unemployment received from NY is also taxable to NY (and Connecticut). On the NY return, it will be 100% “New York source portion.”

New York does not recognize the $10,200 exemption for unemployment so there is no subtraction. For New York unemployment in TurboTax CD\download:

1. Enter $10,200 in New York Income Allocation as “Unemployment compensation”
2. Enter -$10,200 in New York Income Allocation “Unemployment Compensation Exclusion”
3. Keep going. You will see a screen called Unemployment Compensation Exclusion. Enter $10,200 is New York Source Portion

Connecticut will give you a credit for tax paid to New York on any double-taxed income.

[BigRedABC]

Thank you. Understood on the first part. Still would like clarification on the second part.

New York does not recognize the $10,200 exemption for unemployment so there is no subtraction. For New York unemployment in TurboTax CD\download:

1. Enter $10,200 in New York Income Allocation as “Unemployment compensation” - (If the compensation was greater, say $20,000. I would enter $20,000 here and not $10,200, correct?)
   
2. Enter -$10,200 in New York Income Allocation “Unemployment Compensation Exclusion” - (Why would I enter -$10,200/a negative number here?) Shouldn't this be a $0? You mentioned above that New York does not recognize the $10,200 exemption for unemployment, so there is no subtraction. Wouldn't entering  -$10,200 be subtracting it from New York income?)
   
3. Keep going. You will see a screen called Unemployment Compensation Exclusion. Enter $10,200 is New York Source Portion (I'm confused, is this the same as above? I did not hit this section. I only hit the New York Income Allocation section mentioned above in response 2 that referenced the exclusion.).
   

Please clarify. Thank you.

[AmyC]

Yes, the unemployment income would be the full amount since you are a non-resident. The program has done some changing. 

 NY politicians have a bill that is still in committee stages and has not yet passed to exempt $10,200 of unemployment income. See NY Legislation to follow the process and support it.

So, at the moment, the correct answer is zero exclusion since it is fully taxed in NY. However, if the bill passes, then it will be exempt and the full -$10,200 would be excluded.

Please preview your state return to be sure your answers ended up on the return the way they should. In desktop, go to FORMS. Online, see How do I preview my TurboTax Online return before filing?