Unemployment compensation for part time resident

[garyy]

My daughter was working in California in 2020. She began receiving unemployment compensation from California after being furloughed since May of 2020. She moved to Hawaii in September 2020 and has not worked in Hawaii. She is still getting unemployment compensation from California. Since she hasn't worked in Hawaii do I need to report the portion of unemployment she received while in Hawaii even if she is getting paid from California?

[TomD8]

Yes.  Unemployment received by a resident of Hawaii is taxable by Hawaii, even if it was earned in another state.  However, Hawaii may be adopting the federal unemployment exclusion of $10,200.  See "Adoption of Federal Tax Provisions" in this reference:

https://tax.hawaii.gov/upd_4txpayr/

Note that Hawaii also gives this instruction in that same reference:

"For taxpayers who wish to file on or before April 20, the Department suggests preparing the return as if Hawaii did not conform to the federal provisions that reduce taxes. If Hawaii does conform to any of the federal provisions that reduces the tax amount owed after you’ve already submitted your return, an overpayment may be claimed by filing an amended return."

[garyy]

Thanks for the reply. So being that the 1099G that she received from California is the total unemployment compensation she received in 2020, I will need to calculate how much was distributed while she was in California and Hawaii, correct?

Thank you in advance.

[TomD8]

That’s correct.  Only the portion she received after she became a Hawaii resident is taxable by Hawaii.  She became a Hawaii resident for tax purposes when she began living in her new permanent home in Hawaii.

[garyy]

Thanks for your help.  I appreciate it.