Question

If i received unemployment from dc but I live in Maryland -do i file a dc return? or a nonresident dc return?

Forum|Forum|7 years ago
June 2, 2019
3 replies
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TurboTax Deluxe Windows

Employee

Unless DC tax was withheld from your unemployment, no. DC does not tax a nonresident of DC. If you did have DC tax withheld, you may file a DC nonresident request for a refund.

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D

Dave5550

Is that true even though unemployment benefits are not earned income? I thought tax reciprocity agreements only applied to earned income?

Hal_Al

Employee

Q. Is that true even though unemployment benefits are not earned income?

A. Yes. The technicality is that the income (UIC unemployment income compensation) was received in MD. This is a common situation and the rule is the same in all states; you only pay tax on out of state UIC to your home state.

K

KLEM1

So if I lived in Maryland and received DC UI, with federal withdrawals, I owe Maryland?

M

MAK70

Yes, if you were a resident of Maryland you would only have to report and pay the tax on unemployment in Maryland, even if it was DC UI.

@KLEM1

K

KLEM1

I received my last two DC UI checks while a resident of Virginia. Will this have any impact on what I owe Maryland?

@MAK70

M

MAK70

If you were a Virginia resident when you received the Unemployment, it would be allocated to Virginia. If you file a Part Year Virginia return, you would include it on as income on the Virginia return, and then not include it for Maryland (on the part-year MD502 under Subtractions). Note: Unemployment is not taxable income in Virginia.

@KLEM1