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?

[grendaisy1039]

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?

[fanfare]

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

[TomD8]

@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

[subaonyx007]

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?

[subaonyx007]

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?

[DianeW777]

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. 

• New York Nonresident filing information

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.

• Multiple State-Where to File
• State Departments of Revenue
• State Tax Forms and Filing Options

@subaonyx007

[subaonyx007]

@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?

[DianeW777]

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.

[subaonyx007]

@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)?

[DianeW777]

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

[subaonyx007]

@DianeW777

FYI, I started living in South Carolina on 07/29/21 and started working in South Carolina on 11/16/21 - Is that okay?

Also, below I attached a screenshot of my portal - Can you confirm I filled out the information correctly based on our conversation.

[DianeW777]

Enter the date you began living in South Carolina (SC).  Yes, it's filled out correctly except you should enter another state you lived in.  Since NM was limited time you should choose NJ for that question. The state interview will allow you to change residency status and you need to complete the 'Other State' section as discussed earlier.

[subaonyx007]

@DianeW777 

Okay, great! So it should like this (reference screenshot below)?

Also, what do you mean by The state interview will allow you to change residency status and you need to complete the 'Other State' section as discussed earlier ?

[MarilynG1]

When you indicate that you lived in SC on December 31, 2021 and TurboTax asks 'did you make $ in other states' that would mean NM and NY in your case.

Since you already said you lived in South Carolina and New Jersey, TurboTax expects you to report income there.

As you go through each state interview, you will be asked the dates you lived in each state.  

Click this link for more info on Allocating Income as a Part-Year Resident. 

Since we can't see your return in this forum, you may need help from someone who can actually see your return, like TurboTax Live.

[Edited 2/16/2022 3:53 pm]

[subaonyx007]

@MarilynG1 

I never lived in NY state during 2021. I only received unemployment from NY State. So why would I say NY and NM in 'Did you make $ in other states' section? Please confirm.

I lived in the below state for these dates:

New Jersey: 01/21 - 04/21 

New Mexico: 05/21 - 07/21

South Carolina: 07/21-Present