State Tax Updates

States 1040 Unemployment Income – Conforming/Non-Conforming to Exemption

(As of 4/13/21)


The following provides information on how each state is taxing Unemployment compensation after the federal $10,200 exemption was signed into law on March 11, 2021. It also provides information on what each state will require for returns that were filed before the new federal provision was enacted.

State Treatment of Unemployment Income What to Do for a Return that is Already Filed  See the Following on the State website for more info
Alabama Not Taxable Correct as filed  - No adjustment or amended return needed Income Exempt for Alabama Taxation
Arizona Follows Federal - Allows exclusion TBD 2020 Conformity Notice
Arkansas Not Taxable TBD News Article
California Not taxable TBD Impact of Recent Federal Changes
Colorado Full amount is Taxable TBD Colorado Impact of Federal Economic Recovery Legislation
Connecticut Follows Federal - Allows exclusion TBD Taxpayer Services Bulletin - TSSB 2021-2
Delaware Not Taxable TBD Tech Info Memo 2021-1 
Georgia Full amount is Taxable TBD Information on Unemployment
Hawaii Full amount is Taxable pending legislation TBD Updates for Taxpayers
Idaho Full amount is Taxable TBD What Pandemic related income is taxable
Illinois Follows Federal - Allows exclusion Will automatically adjust returns filed before March 15 ARP - Nontaxable Unemployment benefits
Indiana Full amount is Taxable Correct as filed – No adjustment or amended return needed Unemployment Income and State Taxes
Iowa Follows Federal - Allows exclusion Will automatically adjust Iowa Update Article of 3/29/21
Kansas Follows Federal - Allows exclusion Must Amend
Kentucky Full amount is Taxable TBD Unemployment Benefits Fully Taxable on KY returns
Louisana Follows Federal - Allows exclusion Must Amend New Release of March 26
Maine Follows Federal - Allows exclusion Must Amend Unemployment Compensation Instructions
Maryland Own calculation - New Form released 4/15 Must Amend Relief Act Tax Alert
Massachusetts Passed legislation with own calculation similar to Federal Will automatically adjust Unemployment Benefits  
Michigan Follows Federal - Allows exclusion Should Amend Notice Regarding Treatment of Unemployment
Minnesota Full amount is Taxable TBD Tax Law Changes
Mississippi Full amount is Taxable TBD
Missouri Follows Federal - Allows exclusion Must Amend Unemployment Tax Relief Facts
Montana Not Taxable Correct as filed  - No adjustment or amended return needed Unemployment Explanation Article
Nebraska Follows Federal - Allows exclusion TBD Tax Changes Due to COVID
New Jersey Not Taxable TBD New Jersey - Exempt Income
New Mexico Follows Federal - Allows exclusion Must Amend Bulletin 300.22 - Publications ->Bulletins -> 300 Series
New York Full amount is Taxable Must Amend NY State implications of recent Fed COVID Relief - FAQs
North Carolina Full amount is Taxable TBD Impact of ARP on North Carolina Returns
North Dakota Follows Federal - Allows exclusion Will automatically adjust returns filed before April 1 News Release - Guidance on Unemployment Benefits
Ohio Follows Federal - Allows exclusion Must Amend Update on Unemployment Benefits
Oklahoma Follows Federal - Allows exclusion Will automatically adjust returns filed before March 15 American Rescue Plan – Unemployment compensation
Oregon Follows Federal - Allows exclusion Will automatically adjust ARP - FAQs
Pennsylvania Not Taxable Correct as filed - No adjustment or amended return needed
Rhode Island Full amount is Taxable Correct as filed - No adjustment or amended return needed Guidance on tax treatment of Unemployment Benefits
South Carolina Full amount is Taxable Must Amend SCDOR Issues Guidance
Utah Follows Federal - Allows exclusion Should Amend What's New For This Year
Vermont Follows Federal - Allows exclusion Will automatically adjust New Federal Exclusion for Unemployment Benefits
Virginia Not Taxable TBD What you need to know about Virginia's Conformity
Washington DC Follows Federal - Allows exclusion Must Amend Unemployment Exclusion Amended Returns
West Virginia Follows Federal - Allows exemption Must Amend CARES Act and American Rescue Plan Conformity
Wisconsin Full amount is Taxable Correct as filed - No adjustment or amended return needed Unemployment Compensation