Do non-residents have to pay NY state tax on unemployment benefits?

Generally you pay state taxes where you LIVE, not where the benefits come from. So if you're a PA resident now, you shouldn't have to pay NY state tax on those benefits. But I'd double check with a tax professional to be 100% sure. The state tax rules can get tricky with interstate stuff.

I had the same issue trying to get answers about tax questions. Got so fed up I found this service called claimyr.com that connected me with an actual human at NY unemployment in like 20 minutes! Totally worth it to finally get someone on the phone who could answer my specific situation. They helped me figure out my tax obligations really quickly. Check out this video about how it works: https://youtu.be/Rdqa1gKtxuE

I think you'll probably need to file a non-resident NY tax return (Form IT-203) for the period you were receiving NY unemployment. You report the unemployment income to both states but PA should give you a credit for taxes paid to NY to avoid double taxation.

As someone who went through this last year, you def need to file a partial-year NY resident return AND a PA resident return. The unemployment income needs to be reported to NY since that's where it came from. It's annoying but that's how it works based on my experience.

I actually just went through this EXACT situation (moved from NY to NC though). Here's what I learned after talking to a ny unemployment rep: You DO have to pay NY state taxes on the unemployment benefits because they originated in NY, even if you're no longer a resident. You'll file as a non-resident for NY taxes. You also have to report that income to your new state (PA), but most states have tax credits to avoid double taxation. The most reliable way to get definitive answers is to actually talk to someone at the tax department or unemployment office, which I FINALLY managed to do using claimyr.com after weeks of busy signals and disconnections. It was the only way I could get through to a real person who actually knew what they were talking about.

The ny unemployment system is such a joke when it comes to this stuff! I spent 3 months trying to get an answer about a similar tax question. The website is from like 2002 and hasn't been updated since 🤣

Check with r/tax - they might have better advice for your specific situation

I thought unemployment benefits were federally taxable but exempt from state taxes? Or is that just in certain states?

Don't waste time with all this back and forth - just call NY unemployment directly and ask them. That's what I did. Had to use claimyr.com to actually get through (normal phone lines are IMPOSSIBLE) but once I got an agent on the phone, they explained exactly what I needed to do for my tax situation. They'll tell you if you need to file in NY as a non-resident and what forms to use.

i moved from ny to florida last year and still had to pay ny taxes on my unemployment 😡 it's total bs but that's how they do it

You need to file Form IT-203 (Nonresident and Part-Year Resident Income Tax Return) for NY. Your unemployment benefits from NY will be taxable in NY even though you're a PA resident now. Make sure you also report it on your PA return, but PA should give you credit for taxes paid to NY.

According to the ny tax department website: 'If you're a nonresident, you don't pay tax on your unemployment compensation.' Source: https://www.tax.ny.gov/pit/file/unemployment-compensation.htm

Went through this last year. You need to file both a part-year NY return and a PA resident return. NY will tax the unemployment benefits you received while you were a NY resident, but not after you established residency in PA. Your best bet is talking directly to NY unemployment - I used claimyr.com to get past the phone tree hell and got answers in 15 minutes.