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New Member

unemployment taxes

resident in New Mexico and worked in Colorado, received unemployment from Colorado, which state do I pay taxes to on the unemployment?

2 Replies
Employee Tax Expert

unemployment taxes

Unemployment benefits are taxable to both New Mexico and Colorado. File a non-resident Colorado income tax return and a resident New Mexico return. New Mexico will give you a credit for tax paid to Colorado.


Unemployment from Colorado is considered “Colorado source income,” taxable to the state.


Colorado says, “Severance pay, paid-out sick and vacation leave pay, disability pay and unemployment insurance is Colorado-source income to the extent that the income is attributable to employment in Colorado regardless of whether the person is a resident when the benefit is paid.”


Refer to Colo. Code Regs. 39-22-109


New Mexico residents are taxed on income received from anywhere, whether in-state or out-of-state.

New Member

unemployment taxes

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