What does it mean when STATES THAT DO NOT TAX UNEMPLOYMENT BENEFITS on the state return? I am in PA so does that mean it will have no affect on my return?

tati3 · ‎January 16, 2021

xmasbaby0 · ‎January 16, 2021

That is correct. Some states will tax unemployment compensation and some do not. Each state has its own tax laws. But the unemployment is taxable on your federal return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

TomD8 · ‎January 16, 2021

Your unemployment compensation is taxable on your federal tax return, but not on your PA state return. See this:

https://www.uc.pa.gov/unemployment-benefits/benefits-information/Pages/Taxes-on-Benefits.aspx#:~:tex...).

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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What does it mean when STATES THAT DO NOT TAX UNEMPLOYMENT BENEFITS on the state return? I am in PA so does that mean it will have no affect on my return?