Unemployment and Taxation

During the Global Crisis surrounding the coronavirus, many people have relocated to other states due to the loss of employment. Many more may have been working from home in another state from where their company pays unemployment. This means that the unemployment benefits you are receiving may be from a different state than you are a resident.

What does this mean for you? Well, this could mean you are liable to pay taxes on the unemployment in the state you received the benefit from. In the past, this might not have been so much of an issue.  But with the added federal stimulus on the unemployment benefits, you may have a requirement to file in the state in which you received the benefit.  There are a couple of key items to be aware of:

1.       You might have to pay state taxes on the benefits you received in your resident state even if you did not receive benefits from that state. (This applies only to states with state income taxes)

2.       You may have to file as a non-resident or part-year resident in the state where you received benefits from.

 If you have questions about how this might affect you, please contact us at michael@accountingpersonalized.com or call us at 352-224-9530.