Unemployment Insurance 2021

[ddeal860]

I have lived in Tennesse since 01/04/2021, but continued to receive unemployment insurance from the State of Illinois in 2021. Do I have to file a return for Illinois? Or Tennessee? Is the money withheld as state taxes by Illinois refundable since I didn't live there?

[LenaH]

Per the State of Illinois, unemployment compensation included in your federal adjusted gross income is taxable to Illinois if

• you earned it while you were an Illinois resident or
• you received it from the Illinois Department of Employment Security as a nonresident.

Therefore, you would file a part-time Illinois return from 1/1-1/3/2021 in which partial unemployment would be taxable. 

Tennessee does not have income tax on wages and there would be no tax return to file for 2021. 

Is unemployment income taxable?

[Mike9241]

Illinois law provides that unemployment compensation paid by the Illinois Department of Employment Security to a nonresident of Illinois is taxable to Illinois.

you will have to file an Illinois non-resident return.

Tennessee does not have an income tax.