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Level 1
posted Feb 17, 2022 12:09:35 PM

My unemployment counts as income on my State return, but there is no income on unemployment in the state of NJ. What should I do?

During the past year I received unemployment in the state of NJ.
When I started my state return the unemployment amount counted as a gross income although the state of NJ do not tax on Unemployment. I spoke with the support and now one was able to explain why it is showing and how to remove it from the taxable income.
How should I proceed?
Thanks!!

0 1 1740
1 Best answer
Level 8
Feb 17, 2022 12:59:56 PM

Turbo Tax knows that NJ unemployment is not subject to state withholding. It should not affect the taxable Jersey income. Adjust the unemployment income to 1 dollar. The federal refund or liability amount will change but have no affect on the Jersey result. 

1 Replies
Level 8
Feb 17, 2022 12:59:56 PM

Turbo Tax knows that NJ unemployment is not subject to state withholding. It should not affect the taxable Jersey income. Adjust the unemployment income to 1 dollar. The federal refund or liability amount will change but have no affect on the Jersey result.