Question

Unemployment Benefits received from a non-resident state

Forum|Forum|5 years ago
March 15, 2021
1 reply
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I live in Arizona but work in California. I received unemployment benefits from California. Are those CA based unemployment benefits Taxable in Arizona, and how would I handle that in Turbo Tax?

D

DavidD66

As an Arizona resident, all of your income is taxable by Arizona. Your California sourced income is also taxable by California. Arizona will give you a credit for tax paid to other states for the tax you pay to California. You will file an Arizona resident tax return, and a California non-resident tax return. You will allocate you California sourced income to California in that state tax return. See screen shot below:

California Income Allocation