Unemployment From Home State Being Taxed In Nonresident State where I worked

[upsguy13]

Hello,  I reside in the state of Connecticut but worked in the state of Massachusetts last year.  I received unemployment benefits from the state of Connecticut prior to working in Massachusetts.  I never lived in Massachusetts.  However when using TurboTax to do my state return for Massachusetts, the unemployment compensation from Connecticut is taxable in Massachusetts.  This doesn't seem right.

[MayaD]

Allocate your unemployment income to Connecticut (the state you were a resident of when you received it).

On your Massachusetts non-resident return, enter 0 on the screen that asks for the amount of Unemployment income earned in MA to avoid paying taxes on that income.

To ensure accurate calculations, always complete the non-resident return first if filing in multiple states .

[upsguy13]

Hello,  I can't find a way to allocate unemployment compensation in Mass, it is only for wages earned.   TurboTax brings up a screen showing the unemployment compensation received.  There are 2 boxes, one that has the amount received in all states, and one that asks for the Non-MA portion.  Since the total amount was received from CT, I entered the same amount in the box.  This then gets the unemployment compensation taxed in MA.  If I enter 0 then the unemployment compensation will not be taxed in MA.  

[KrisD15]

Since you are a resident of Connecticut and that is the state that paid the unemployment, you will pay Connecticut tax on that income. 

Since you only work in Massachusetts, you will pay Massachusetts tax on the income you earned there. 

"If you're a nonresident of Massachusetts, you must file a Massachusetts Income Tax Return if you received Massachusetts source income in excess of your personal exemption multiplied by the ratio of your Massachusetts source income to your total income, or your gross income was more than $8,000 – whether received from sources inside or outside Massachusetts."

Mass

If you started the Connecticut tax return first, delete that state. Enter the information for the non-resident state of Massachusetts FIRST. Only allocate the wages earned there. 

Next start the Connecticut tax return. Allocate the wage and unemployment income on the resident state return. The tax you are liable for on the Massachusetts return should show as a credit (or possible partial credit) on the Connecticut return.  

Conn

The order is very important, only do the non-resident state return FIRST, then the resident state return.