Unemployment Benefits from NY - Lived in Texas throughout 2020

[sagar615]

Hi, my wife and I moved from NJ to TX in Nov 2019 due to my job. My wife got her unemployment benefits in from Mar to July 2020 from the state of NY as all her previous work was in NY. She started working in TX in Aug 2020. So we both have lived in TX throughout 2020, both have income from TX but she also has unemployment benefits from NY in 2020. For the unemployment state tax for NY, we are filing IT-203 (non resident) form.

My question is - on the form IT-203, would the tax calculation on unemployment benefits amount be based on Federal amount and then applying a percentage for the NY unemp amount portion or should just I mention unemployment benefits on IT-203 and leave Federal portion out of it? 

[DaveF1006]

No. You will report the 1099-G, Unemployment Compensation, on your federal return and the information will flow automatically to your IT-203. Don't apply percentages or report it on your IT-203.  let the information flow between your federal and NYS account. Keep it simple rather than confusing.

[Edited 03-28-2021|04:17 PM PST]

[sagar615]

Thanks - I did just that on my federal return. I filled in the 1099 G and it automatically opened up NY state estimate but then when I proceeded to review and complete IT 203, it asked me all income allocation question where I allocated unemployment compensation to NY and it automatically pull the federal amounts, calculated the % and now I own taxes because the tax calculation is based on my overall federal income along with applying % for NY component - which brings my question - only for unemployment compensation benefits from NY, does the federal (other states) component be part of IT 203 (turbotax automatically did pull in all details, treating unemployment as any other NY source wages). Just wanted to make sure thats right. 

[MaryM428 · Accepted solution]

You were correct to enter the 1099-G and allocate the unemployment compensation to NY.  Unemployment is taxed as the same rate as earned income in almost all states.  TurboTax has been updated to forgive the first $10,200 in unemployment benefits if you meet the income requirements.

If your modified AGI is $150,000 or more, TurboTax won't exclude any unemployment compensation. 

How Does Receiving Unemployment Affect My Taxes?