If you're filing a New York part-year resident or nonresident return, you may need to manually allocate your unemployment compensation to New York.
Unlike wages reported on a W-2, unemployment compensation isn't automatically assigned to a specific state. Because of that, the software can't determine how much unemployment income should be taxed by New York. You'll need to enter the New York-taxable portion yourself.
For full-year New York residents, this manual entry isn't required because all income is generally taxable to the resident state.
Why Do I Need to Enter It Manually?
The program automatically pulls wage income from Box 16 of your W-2 because those wages are already tied to a specific state.
Other types of income, including unemployment compensation, don't contain the state-specific allocation information needed for a New York part-year or nonresident return. Since the software can't determine which state paid the benefits or how they should be allocated, the New York-taxable portion must be entered manually.
How Do I Enter Unemployment Compensation on My New York Return?
Follow these steps:
- Go to State Section
- Edit Part-Year/Nonresident New York Return
- Income Subject to Tax
- Choose Enter Income, Other Than Wages, Taxable to New York
- Unemployment Compensation
Enter only the portion of unemployment compensation that is taxable to New York.
How Much Should Nonresidents Enter?
If you're filing as a New York nonresident, enter the portion of the federal unemployment compensation amount that represents unemployment income taxable to New York.
In general:
- Enter unemployment compensation received from New York sources.
- If the unemployment benefits were based on wages earned partly in New York and partly outside New York, allocate the benefits using the same method used to allocate the wages on which the benefits were based.
This helps ensure that only the New York-source portion is included on the New York return.
How Much Should Part-Year Residents Enter?
If you're filing as a New York part-year resident, enter the portion of unemployment compensation you received while you were a New York resident.
Generally:
- Include benefits received during your New York resident period.
- Do not include benefits received while you were a nonresident unless they are otherwise taxable as New York-source income.
Examples
Nonresident Example
You lived in Pennsylvania all year and received unemployment benefits based on employment that was partly performed in New York. Allocate and enter only the New York-source portion of the unemployment compensation.
Part-Year Resident Example
You moved from New York to another state during the year and received unemployment benefits both before and after the move. Enter the portion received while you were a New York resident.
Important Information
- This entry applies only to New York part-year resident and nonresident returns.
- Wages reported on a W-2 are generally allocated automatically through state wage entries.
- Unemployment compensation must be reviewed separately because it isn't automatically assigned to a state.
- Enter only the portion taxable to New York.
- Incorrect allocations may affect your refund or balance due.
Additional Information
Before entering unemployment compensation, review your Form 1099-G and determine when the benefits were received and whether they are attributable to New York. Taking a few extra minutes to verify the correct amount can help prevent allocation errors and ensure your New York return is prepared accurately.
For additional information, please review the New York instructions below: