Unemployment earned from another state in 2020

[steveandlisab]

I live in Florida  (which has no state income tax) and was a Florida resident for the entire year of 2020.  I also earned unemployment benefits from another State (Vermont) in 2020.  The State of Vermont already withheld VT taxes.  Are we obligated to pay those taxes, or should we be able to get those withheld taxes back by filing a VT return?

[ToddL99]

You will have to file a VT tax return (non-resident) in order to claim a refund of VT tax withheld. As a full-year resident pf FL, you would not be subject to VT tax on your unemployment benefits.

Taxes are based on the state where you lived at the time you received the payments not where the company or organization is located that distributes the payments. 

[steveandlisab]

Thanks, we are doing the state return now on TurboTax and we believe you to mean that we put a zero (0) in the Vermont Income, Unemployment Compensation field, and just keep the Federal box filled in for the full amount.

Please confirm if we understood you correctly and thank you for your time!

[ToddL99]

That would be correct - if you were a FL resident for all of 2020, you don't report any income to VT.