The information in this article will be updated daily as we learn more information from the states.
|State||State Issued Guidance||Notes|
4/16/21 - The American Rescue Plan of 2021 included a subtraction from federal adjusted gross income of up to $10,200 in unemployment income per person for the 2020 tax year. Taxpayers who filed their original federal return for tax year 2020 claiming the subtraction should file their Arizona return starting with federal adjusted gross income from their federal return. Taxpayers that did not take the subtraction on their original federal return and are waiting for the IRS to adjust their return to remove the subtraction should wait to amend their Arizona return.
Simplified instructions for filing an Arizona amended return can be found by following the link in the notes section.
|Individual Amended Return Form|
|Arkansas||3/16/21 - Arkansas is not taxing any unemployment and the changes are already live in all products. The American Rescue Plan on Federal unemployment will not impact Arkansas returns.|
|California||3/24/21 - CA FTB has not released any official statement, however, any Federal UCE will be added back on Line 8f of Schedule CA. This is to not allow a "double deduction" on the CA return given the beginning point of the CA return is the Federal AGI.|
3/16/21 - CO is not conforming to the Federal unemployment update and will continue to fully tax all unemployment received on the CO return. **Colorado taxpayers who have already filed a state tax return for 2020, and included all of their unemployment compensation in the amount of taxable income reported, do not need to take any additional action with respect to their Colorado return.
**TaxSlayer Pro automatically adds back the federal exclusion amount the Colorado state return.
|Connecticut||3/24/21 - The starting point in determining an individual's Connecticut income tax liability is the individual's federal adjusted gross income. There are no Connecticut statutory modifications that require this new federal exemption amount to be added back on Connecticut's return. Therefore, the excluded amount is not subject to Connecticut income tax. For CT filers that have previously filed, CT will require an amended CT return be submitted to claim benefit of the UCE from the Federal return|
|Delaware||1/28/21 - DE General Assembly passed a law that will exempt unemployment benefits received in 2020 from income taxation in DE.|
|5/26/21 - As the federal AGI is the starting point for calculating District tax liability, the federal exclusion for unemployment compensation paid in 2020 provided under the American Rescue Plan Act will also be reflected on District individual tax returns. OTR will provide additional guidance in the form of an official notice on our website, otr.cfo.dc.gov, when more information is available regarding how to ensure such exclusion is reflected on your District tax returns.
**OTR is now advising taxpayers, who filed an original 2020 District tax return without reporting the unemployment exclusion, to file an amended return with OTR.
|Georgia||5/6/21 - The provisions of ARPA have not been adopted and unemployment income remains taxable at the state level and must be included in a taxpayer’s income on his or her Georgia return. Any unemployment income that was excluded on the taxpayer’s federal return should be added back on Georgia Form 500, Schedule 1, line 5.||GA DOR Website|
|Hawaii||3/19/21 - The Department of Taxation (DOTAX) does not have the administrative authority to conform Hawaii income tax law to federal income tax law, including the Consolidated Appropriations Act of 2021 (December 27, 2020) and the American Rescue Plan Act of 2021 (March 5, 2021). The only way for a federal tax provision to be adopted for Hawaii income purposes is through a legislative amendment of the Hawaii Revised Statutes.
**There are several conformity bills that address these issues that are currently being considered by the Hawaii State Legislature. The current Legislative Session adjourns on April 29, 2021, thus, we will not know whether any federal provision has been adopted until after that date.
3/31/21 - Idaho unemployment insurance benefits are taxable by Idaho and should be included in Idaho income when filing 2020 Idaho income tax returns. Any unemployment benefits deducted on federal Form 1040, Schedule 1, line 8, should be added back to the Idaho return as follows: If filing Form 40, report the income on Form 39R, Part A, line 6, "Other Additions." If filing Form 43, don't include the federal unemployment insurance exclusion on line 19, "Other Income." Report the exclusion amount on Form 39NR, Part A, line 4, Column A, "Other Additions."
**TaxSlayer Pro automatically adds back the federal exclusion amount on the Idaho state return.
3/30/21 - Taxpayers will not be required to add back any of the nontaxed unemployment benefits in computing their Illinois base income. If you have filed – See Amended Return Information in the Notes column.
**Illinois uses Federal AGI as a starting point for figuring Illinois taxable income. No adjustments in TaxSlayer Pro are needed.
|Nontaxable unemployment benefits amended return information|
Unemployment compensation is taxable. Your unemployment compensation is taxable on both your federal and state tax returns. Be sure to include information from your Form 1099G.
Federal Pandemic Unemployment Compensation (FPUC)
Pandemic Emergency Unemployment Compensation (PEUC)
Pandemic Unemployment Assistance (PUA)
Lost Wages Assistance (LWA)
On April 22, the Indiana General Assembly passed an update to Indiana's conformity to the Internal Revenue Code (IRC), but specifically decoupled from certain provisions of IRC, and Governor Holcomb signed this into law on April 29.
DOR revised the unemployment compensation deduction worksheet to account for the difference between federal and state treatment of unemployment income in 2020. Do not use the versions found in the IT-40 and IT-40PNR instruction booklets.
Unemployment income is not considered earned income for the Indiana Earned Income Tax Credit.
|Indiana Unemployment Compensation|
3/29/21 - Because Iowa is a state that automatically conforms with the Internal Revenue Code, certain unemployment compensation will not be included in Iowa income. Based on the federal legislation, the first $10,200 of unemployment compensation income is excluded from taxation for qualifying taxpayers. Because the federal legislation was enacted subsequent to many taxpayers filing their returns, taxpayers were unable to take advantage of this change. As a result and to assist these taxpayers, the Department will begin making unemployment compensation related automatic adjustments. The adjustment process may take up to 90 days due to cross-checking these amounts against 1099s and validating eligibility to ensure accuracy and eliminate fraud. Taxpayers will not need to file an amended Iowa tax return if their only adjustment pertains to unemployment compensation. Taxpayers filing an original 2020 individual income tax return should report the unemployment compensation exclusion amount on Form IA 1040, line 14, using a code of M.
3/16/21 - Kansas law does not contain a specific addition or subtraction modification for the unemployment excluded as part of the newly enacted H.R.1319 “American Rescue Plan Act of 2021”. As a result, any excluded amount of unemployment on the federal return will “flow through” to the Kansas return since the Federal Adjusted Gross Income (FAGI) is the starting point for the Kansas income tax calculation. Since there is not a modification for the unemployment exclusion and the effects of the exclusion are included in the FAGI, no action is required unless a return has already been filed before realizing the unemployment exclusion on the federal return. An amended Kansas return will be required once the federal return is corrected to reflect the unemployment exclusion.
*Kansas uses Federal AGI as a starting point for figuring Kansas taxable income. No adjustments in TaxSlayer Pro are needed.
4/1/21 - All unemployment compensation earned as a Kentucky resident is subject to Kentucky income tax. For Kentucky residents, any amount excluded up to the $10,200 on a taxpayer's federal income tax return is required to be added back on the Kentucky individual income tax return on Schedule M, Line 5 as an "Other Addition". For part-year Kentucky residents, the amount should be included on the Form 740-NP, Section B, Column B, line 13 as unemployment compensation. The Kentucky return should be amended if a taxpayer previously filed and did not add back the excluded unemployment insurance.
**TaxSlayer Pro automatically adds back the federal exclusion amount on line 5 of Schedule M.
3/26/21 - The first $10,200 of unemployment benefits paid to Louisiana residents who received them in 2020 are exempt from Louisiana state income tax. The federal American Rescue Plan, signed into law on March 11, 2021, excludes from gross income the first $10,200 of unemployment benefits received in 2020 by taxpayers with incomes less than $150,000. The tax relief extends to individuals who received benefits through state unemployment insurance programs, including any increased benefits from the federal CARES Act and other federal relief legislation. For state tax purposes, the first $10,200 of unemployment benefits will not be included in the calculation of adjusted gross income for Louisiana income tax. For married couples filing jointly, the exclusion applies to the first $10,200 received by each spouse. Louisiana taxpayers who have not yet filed their 2020 state income taxes should follow the instructions on the resident or non-resident state income tax return, depending on their residency status. Those who have filed their state taxes already will need to file an amended state return to reduce their Louisiana adjusted gross income by the appropriate amount.
*Louisiana uses Federal AGI as a starting point for figuring Louisiana taxable income. No adjustments in TaxSlayer Pro are needed.
|Louisiana News Release|
4/7//21 - If you received unemployment benefits in 2020, you may be eligible to claim an exemption from both Maine and federal income tax. If you have an annual income of less than $150,000, regardless of filing status, recently enacted legislation exempts up to $10,200 in unemployment benefits from both federal and state income tax for tax year 2020.
*Maine uses Federal AGI as a starting point for figuring Maine taxable income. No adjustments in TaxSlayer Pro are needed. TaxSlayer Pro automatically pulls the federal exemption amount to Schedule PTFC when figuring the Property Tax fairness Credit.
|Unemployment Compensation Instructions|
|Maryland||3/16/21 - Maryland will be exempting all Unemployment Income issued by MD and reciprocal states using Form 502LU. Schema to accept this form electronically expected by 3/31/2021. MD filers that have already filed their MD will need to amend to subtract applicable Unemployment Income. MD filing and payment deadlines have been extended to July 15, 2021.||Maryland News Release|
|Massachusetts||4/2/21 - As a result of a recent state law change, taxpayers with household income not more than 200% of the federal poverty level may deduct up to $10,200 of unemployment benefits from their taxable income on their 2020 and 2021 tax returns for each eligible individual. Federal law allows a deduction of up to $10,200 if the taxpayer’s federal adjusted gross income is less than $150,000. Since the Massachusetts income threshold is different from the federal income threshold, some taxpayers may be eligible for a deduction on their federal tax return but not on their Massachusetts tax return.
**The full amount of unemployment compensation paid to the taxpayer is reported on the return (Form 1, line 8a or Form 1 NR/PY, line 10a). A deduction under the new provision should be reported on Schedule Y, line 9.
** Note that that full amount of the unemployment compensation received is included in the calculation of household income for the purpose of calculating eligibility.
|Michigan||4/27/21 - The Department is requesting that all taxpayers who already filed an original 2020 Michigan tax return without reporting the unemployment exclusion (for example, if the original return was filed prior to the American Rescue Plan Act) now report the unemployment exclusion by filing an amended Michigan tax return.||Update Regarding the Treatment of Unemployment|
If you filed a 2020 income tax return that included unemployment compensation or PPP loan forgiveness, we'll either adjust the return or ask you to amend it.
|Minnesota Tax Law Changes|
|Mississippi||4/1/21 - All unemployment income is taxable to Mississippi. Unemployment benefits are taxable to Mississippi under Miss. Code Ann. Section 27-7-15 and must be included as income on the Mississippi income tax return.|
|Missouri||3/18/21 - Missouri individual income tax return begins with the federal adjusted gross income on the federal return. At this time, Missouri does not have any requirement or authority for the taxpayer to add back the excluded unemployment compensation from the Federal return.|
3/18/21 - Montana currently does not tax unemployment benefits.
Taxpayers who filed a Montana tax return on or before March 12, 2021, should not amend the state return to report the federal exclusion of up to $10,200 in unemployment compensation received in 2020 if it was already excluded on the return. Taxpayers filing after March 12, 2021, should follow the instructions for Schedule 1, Line 8; Additions Schedule, Line 14; and Subtractions Schedule, Line 7, to exclude all unemployment compensation from Montana income tax.
|Nebraska||3/18/21 - As a state of rolling conformity, Nebraska follows federal changes to the IRC unless the Nebraska Legislature enacts legislation indicating otherwise. The Legislature has not enacted legislation indicating nonconformity to the American Rescue Plan Act of 2021 at this time, meaning Nebraska conforms to the federal exclusion from gross income for unemployment compensation received in any taxable year beginning in 2020. For Nebraska return purposes, a Nebraska individual income tax return begins with the taxpayer’s adjusted gross income reported on the federal return. When looking at federal exclusions, Nebraska taxpayers would already have taken the exclusion on their federal return as part of calculating their adjusted gross income. As a result, the exclusion would already be taken at the federal level and would be reflected in the taxpayer’s federal adjusted gross income on Line 5 of the Nebraska individual income tax return. Assuming Nebraska continues to conform to this federal change and no legislation indicating otherwise is enacted, the federal exclusion for unemployment compensation received in 2020 would not require an adjustment on the Nebraska return.|
|New Jersey||3/31/21 - Unemployment, including unemployment received under the COVID-19 relief, is not taxable income and should not be reported on your NJ income tax return.|
|New Mexico||3/19/21 - New Mexico follows the federal treatment of unemployment insurance benefits, including the exclusion. NM Taxpayers that have already filed their returns prior to 3/19/21 (TaxSlayer Fed UCE implementation) should file an amended NM return to claim any additional refund that may now be due. For taxpayers that have not filed their NM return (post 3/19/21), the UCE benefit will automatically flow to the NM return.|
|New York||3/24/21 - New York State is currently decoupled from the federal American Rescue Plan Act of 2021. This Act excludes from federal gross income a portion of the unemployment compensation received in tax year 2020 for taxpayers with adjusted gross income (AGI) of less than $150,000. At this time New York State remains decoupled from the unemployment compensation income exclusion and an adjustment to income for New York is required. The Unemployment Compensation Exclusion Addback should be included on Form IT-558 New York State Adjustments due to Decoupling from the IRC and has been designated as A-011.|
|North Carolina||3/16/21 - **Announcement coming soon** The Department is planning to issue an important notice in the near future on the topics Unemployment Exclusion and whether North Carolina will or will not conform to the American Rescue Plan Act.||North Carolina Statement|
|North Dakota||3/22/21 - North Dakota law conforms with the provision in the American Rescue Plan Act where the first $10,200 of unemployment benefits are not subject to income tax. This applies to unemployment benefits received in 2020 and for taxpayers with an adjusted gross income of less than $150,000. If taxpayers have additional questions regarding income tax on unemployment benefits, they can contact our Individual Income section.||North Dakota
|Ohio||3/31/21 - OH has issued a statement to software vendors advising that a bill was signed on Wednesday March 31, 2021 putting Ohio into conformity. Additional details can be found using the link to the OH Conformity page.||Ohio Conformity Webpage|
|Oklahoma||3/22/21 - Under the American Rescue Plan, certain taxpayers may exclude up to $10,200 of unemployment compensation paid in 2020 from income. If you’ve already filed your tax year 2020 return do not file an amended return at this time. Because the effect on calculation of Oklahoma AGI is determined by the impact of the deduction on federal AGI, the OTC will offer further guidance upon release of additional details from the IRS.||Oklahoma Tax Commission|
|Oregon||3/17/21 - Oregon follows the federal treatment of unemployment insurance benefits, including the exclusion. Full-year residents filing Form OR-40 do not have to do anything because the exclusion flows through to their Oregon return. Part-year residents and nonresidents with UI benefits from more than one state may exclude a portion of the Oregon-source UI benefits in proportion to their total benefits.||Oregon Newsroom|
|Pennsylvania||3/31/21 - PA Department of Revenue does not include unemployment income as taxable income on the PA return.|
|Rhode Island||3/29/21 - Pursuant to R.I. Gen. Laws 44-30-12(b)(6), unemployment compensation received but not included in federal adjusted gross income is to be added back to federal adjusted gross income as a “Modification increasing federal adjusted gross income.” The addback of any unemployment compensation exclusion from the Federal Unemployment Compensation Exclusion Worksheet for Schedule 1, line 8 will be included on line 2g of RI Schedule M.|
|South Carolina||5/25/21 - SC has adopted the exclusion of unemployment compensation exclusion up to the amount excluded from Federal Adjusted Gross Income. Any SC return previously filed prior to the SC adoption must amend their SC state return to receive the benefit of this exclusion, if applicable.||South Carolina Update|
|Utah||3/23/21 - UT does not require an add-back for UCE and taxpayers can continue to file returns at this time. UT has not determined on what to do for previously filed UT returns until the IRS issues guidance on their plans. Utah is still advising its taxpayers to NOT file an amended return.|
|Vermont||3/23/21 - Unemployment compensation is generally taxed in Vermont. However, the state adopted the federal exclusion of up to $10,200 of unemployment compensation received in 2020. If you filed your 2020 Vermont income tax return before the federal exemption went into effect, don't file an amended Vermont return at this time. The state is exploring a solution that would have the state adjust returns and release additional refunds to as many of these taxpayers as possible without the need to file an amended return. The state expects refunds to begin going out this summer.||Vermont Updates|
|Virginia||3/25/21 - There are no taxes on unemployment benefits in Virginia.|
|West Virginia||3/16/21 - Unemployment compensation is subject to tax in West Virginia to the same extent it's taxed at the federal level. As a result, the federal exemption for up to $10,200 of unemployment compensation received in 2020 also applies for West Virginia tax purposes. If you already filed your West Virginia return and didn't claim the exemption, you must file an amended West Virginia return to claim it.|
|Wisconsin||3/18/21 - The federal American Rescue Plan Act of 2021, signed into law on March 11, 2021, allows an exclusion of up to $10,200 of unemployment compensation (UC) on the 2020 federal income tax return. This federal law does not apply for Wisconsin tax purposes. This article will be replaced if Wisconsin law changes.
**If you already filed your 2020 Wisconsin income tax return, and are amending your federal return solely to exclude UC, do NOT amend your 2020 Wisconsin return because there is no change to the amount of taxable income or tax due to Wisconsin.
**If you have not filed your 2020 Wisconsin return, you must add the amount of UC excluded on your federal return.
**Wisconsin provides a subtraction from income for UC. After including all of your UC in federal adjusted gross income on your Wisconsin return, determine if you are eligible for the Wisconsin subtraction by completing the worksheet on page 2 of the Wisconsin Schedule SB.