Issues with 1099-G Box 10a

[thisisjman]

I am trying to do my taxes but am not being allowed to efile.  The issue is I received a 1099-G from the state of Maine, during the pandemic I received unemployment from Maine where I lived at first, however in 2021 I was a resident of Utah.  The unemployment office has all my info as a resident of Utah. Box 10a has the initials UT, but then box 10b has the same id as the payer, the maine department of labor.  I didn't finish filing yet but to see if it fixes the issues i changed the state to maine and then opened a maine state tax return as a nonresident this had be owing money to Utah but receiving money back from Maine, and it seemed like turbotax would then let me e-file.  Was the 1099G wrong and the state in box 10a should be Maine, the payers state, and not my state, the recipient?  This is all kind of confusing

[JohnB5677]

Although unemployment income may come from another state, it is only taxable to the state you are living in at the time you received it.

If you were a resident of Utah for all of 2021 you should not prepare any tax return for Maine.

[thisisjman]

So is the 1099-G wrong in Box A when it says the state is Utah? or is 10-b box wrong where it says it is the same id as the payer?  Turbotax wont let me e-file with 10a still saying UT. It says 10a is supposed to match the payers state I think.  I checked my 1099G rom 2020 since it was same situation and there was no box 10a or b

[AmyC]

The state of Maine paid you unemployment while living in Utah. They are stating UT resident in 10a. Then 10b shows the Maine tax id. However, box 11 and state tax withheld holds the answer.

• If there is no state tax withheld, then delete 10a and 10b and file with those blank.
• If there is state tax withheld, it should be Utah since 10a is Utah. You will want to contact the issuer for the Utah state id, Another option is to make all blank and add the additional tax withheld into the deductions and credits section. Scroll down to Estimates and Other Taxes Paid to enter the tax paid.

[thisisjman]

I called the Maine Unemployment Office and they said it wasn't an error and I needed to ask a tax preparer.  Since the 10a State doesn't match 10b id number how do I know which state withheld the taxes? Last year I was in a similar situation but there was no boxes for any of this. If its Maine do I have to do a Maine state tax return as well?

[RobertB4444]

@thisisjman  @AmyC has answered your questions.  Do you have an amount in box 11?  If so then the state in box 10a is correct because they withheld tax for Utah.  However, if box 11 is blank then you should leave box 10a and 10b blank as well and this will solve your problem.

[thisisjman]

Yes there is an amount in box 11. my issue is that the state id number in 10b doesn't match the state in box 10a

[ZoltanB45]

Maine is who paid unemployment, so what you did is correct .Enter Maine on both 10a and 10b, prepare a Maine return and collect the refund.

[thisisjman]

So I have gotten two different answers from experts on, one saying Utah was the state that withheld it and the other saying Maine is the state that withheld it and to add another state return from Maine.  Who is right? if it is utah how do i get the correct withholding state id number?

[thisisjman]

I just found this in maines tax law for non residents and I think this proves I should file a nonresident maine tax return for the unemployment, can somebody confirm this

1. Compensation for personal services. Except as provided by federal law, compensation received for personal services performed in Maine, regardless of where paid, is Maine-source income. Personal service compensation includes, but is not limited to, wages, salaries, taxable benefits such as annual and sick leave, commissions, fees, or payment in kind. Personal services performed in Maine include sick time and vacation time earned while working in Maine. In the case of compensation for personal services, unless excluded from the definition of “income” under the Internal Revenue Code, the taxpayer must report all Maine-source income even though the taxpayer does not receive the entire amount of such income. For example, amounts withheld by an employer for federal income taxes, FICA contributions, medical insurance plans, or other similar withholding deductions must be included in Maine-source income; on the other hand, compensation contributed to a 401(k) plan is not subject to Maine taxation. Unemployment compensation received by a nonresident that is derived from employment in Maine is Maine-source income.

Seems clear there that Maine is the state that taxed it

[MarilynG1]

The Payer's Name and Address is Maine?  The Payer's ID is Maine, too?

It sounds like you did it right; as a Non-Resident of Maine in 2021, they are refunding your Maine tax paid. 

Since you didn't pay tax to Utah (but lived there), they want to collect tax on the income you received while living there (no matter where it came from).

[warsurplus]

I can't believe how much wrong info is propagating on this question.  The state that paid the unemployment compensation, in this case Maine, withheld the state income tax.   Income tax is owed to the state that paid the compensation regardless of where you lived when you received it.

The box 10a is wrongly showing the state of Utah instead of Maine as the withholding state.  A simple idiot check for this is easy.  Maine happens to use the same payer ID for both state and federal for many payers.  So if you examine the payer ID in box 10b I'd wager it is the same as Maine's federal payer ID on the same 1099  which would suggest in this case that indeed Maine withheld the state income tax from your UI paid from Maine.

File a non-resident Maine income tax return and get your refund or reconcile what you owe to Maine.  I would force the correct state into box 10a for Maine as you prepare the return because it is clearly in error.  If that causes an efile bounce, mail the Maine return with a letter of explanation.