Unemployment living in two states

Forum|Forum|2 years ago
February 10, 2024
1 reply
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I was working remotely from Idaho. I was laid off on January 6, 2023. I filed for unemployment through Idaho, but moved to Oregon on March 1st.

I received a severance package and an annual bonus that paid out in April.

I paid taxes on all of these to Idaho. I received the payments from Idaho unemployment while I lived in Oregon but I did not ever actually work while living in Oregon, these things were just paid out while there.

How do I file my taxes correctly?? When I try to do it it is saying I owe Oregon over $500 with a return of almost $300 from Idaho. I really can't afford it, how can I make sure I'm doing this right?

Not A Product Question

Vanessa A

I received the payments from Idaho unemployment while I lived in Oregon but I did not ever actually work while living in Oregon, these things were just paid out while there.

This will still be taxable to Oregon for the months you received it while you were living in OR. This will not be taxable to Idaho for the months you did not live in Idaho, but for the months you did live in Idaho while receiving it, it would not be taxable to Idaho, only Oregon.

I received a severance package and an annual bonus that paid out in April. Because this is from services provided while living in Idaho, your severance package is taxable to Idaho.

The income you earned while living in Idaho, would also be taxable to Idaho.

If this is how you are doing it, then you are doing it correctly. It would make most sense that you get a refund to the state where you paid everything, then have to turn around and pay money to the state you moved to but did not pay anything to. You can file your Idaho return first and get your refund, then use that to pay Oregon. For both states, you will need to prorate your income to what was earned/received while living in that state.

Oregon may have a higher tax rate than Idaho, so this would also contribute to the additional amount you have to pay.

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TomD8

Employee

@Vanessa A wrote: "This will not be taxable to Idaho for the months you did not live in Idaho, but for the months you did live in Idaho while receiving it, it would not be taxable to Idaho, only Oregon."

But Section 63-3026A(3) of the Idaho Administrative Code states:

"Unemployment compensation benefits are Idaho source income if the benefits are received by the taxpayer from the state of Idaho..."

https://www.law.cornell.edu/regulations/idaho/IDAPA-35.01.01.273

Since Idaho can tax non-residents on all Idaho-source income, it appears that the taxpayer's unemployment compensation received from Idaho is in fact taxable by Idaho.

If received by an Oregon resident, it is also taxable by OR, since OR taxes all the income of its residents, regardless of source. OR will grant a credit for the taxes paid to ID on the dollars taxed by both, so as to prevent double taxation.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.