Filing state tax return on unemployment payed by one state while living in a different state.

[Critter-3]

You will simply file a part year CA return and will only report the income received while a CA resident.  CA unemployment is no longer taxable to CA once you move ... make sure to change your residence properly like change your DL and insurance and voter's registration, etc. 

[mwingerski]

I lost my California-based  job in mid Dec 2019 and officially moved to North Carolina that same month. I have been collecting unemployment from California since January 2020. Will I need to file a California state tax return and North Carolina return or only for NC? 

Thanks

[davidnv]

Hi! So clarifying that we do not have to continue to live in California to collect California unemployment?

[mwingerski]

I can attest to the that fact. You do not have to live in CA to receive California unemployment benefits. However, my question is whether or not you have to file taxes in CA for those payments if you did not live in California for any of that calendar year.

[NewtoNashville]

I wanted to confirm the same thing - if I receive unemployment in CA after I change my domicile to TN (no state income tax), will I need to pay state income taxes to CA on 1) my unemployment income; and 2) additional household income earned by my wife in TN?  

Another twist, we're selling an investment property in CA that closes in March, so we will have two months' of passive loss on that property + capital gain that will be exempt because it qualifies for the 2 out of 5 primary residence rule (i.e. we lived there before renting it out).  We know we need to file a CA return.  Just wondering if this additional connection to CA changes anything.

Basically, my base concern is that potentially accepting unemployment from CA for a couple more months could trigger tax liabilities on my wife's income.  If that were to be the case, I'd decline the unemployment payments because that income would exceed the tax liability.

[DaveF1006]

No, you will not need to file a California non-tax resident tax return for unemployment purposes. This is verified in the following link. 

Regarding your sale of your investment property, this should have no effect on your overall return and does not trigger additional questions about your connection to California.

[PorscheLover88]

So I also am confused.

I got unemployment from NY (because my job was previous located there) but for no part of the time I was receiving unemployment benefits living there. I was a resident of another state. TurboTax asks if the income is attributable to that state. Is the NY unemployment attributable to NY (and I pay that and receive a credit in my home state). Or do I just pay any taxes in my home state?

[PorscheLover88]

And I guess the follow up question is if NY unemployment is attributed to NY when I don’t live there, can the payment amount be separated bet state and fed so that the amount received from state is NY source and the amount received from fed ($600/week bonus) is paid to my home state?

[JotikaT2]

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.

New York Nonresident filing information

In regards to your next question, if some of the unemployment is from sources outside of New York, then you are correct.  You will only report the amount applicable to New York that is from New York sources on your New York Nonresident return.  

You will need to report the full amount of unemployment compensation on your home state tax return, but you will be able to claim a credit for any taxes paid to New York on any income taxed twice by both states.  This will ensure you only pay taxes one time on that particular income.

When completing your return in TurboTax, be sure to complete the Nonresident New York tax return first in order to ensure the credit for taxes paid to another state, pull into your resident state tax return correctly.

[egodwin]

I have a similar question. I received unemployment in Arizona starting in January 2020. I moved to North Carolina at the end of 2019. Do I file unemployment in AZ or in my state of residence NC?

[Hal_Al]

NC

[AmyB6]

I’d like to piggyback off the New York nonresident unemployment. I’m trying to file jointly with my husband but it says if only one of your incomes is taxable for New York then you need to provide a certification form with your return. All of my husbands income is from the state we currently reside in so I’m not sure what form I need to provide then? 
thank you!!

[MarilynG1]

@AmyB6  Yes, you will need to include the Certification for your Spouse if filing your New York return jointly. 

Click this link for more info on New York Return when Both Spouses are Non-Residents.

However, you could file a Married Filing Separately New York Non-Resident return to report your Unemployment Income.

Click this link for info on How to File Separate State when Married. 

[AmyB6]

Is there a way to attach an electronic version of the 203-C since I plan on e-filing? I don’t see how to provide the 203-C with an efile 

Thank you!

[PattiF]

No, you are not able to attach a form to your return. 

Which states are you referring to in your question?