So, I applied for UI in VA the state in which I worked and lived. VA turned me down but sent the Pandemic Unemployment Assistance (Extra $600 per week from Feds)in May of 2020. Later I found out that since my employer is in the state of MD that is where I should have filed so I filled in MD last year. I just found out that I am going to be getting the UI benefit from MD as well as the extra $600. I obviously don't qualify for double payments and now I don't know how to rectify the situation.

VA payed me $6,380 (PUA) with no taxes withheld as far as I know in 2020. MD is going to send me $6,840 (PUA + UI) with taxes withheld. This brings up many issues. First how do I repay VA? Second, I have to file my taxes in the next week, but I have $6,380 that has taxes that need to be paid for VA and Fed, but I will be returning that money, so how do I get back my taxes I will be sending to VA and Fed? Third, do I owe taxes for MD payments in MD or in VA where I live? Fourth, how do I actually go about returning the money to VA? Last, will I owe any penalty or interest for wrongly filing in the state in which I live and work?

I don't even what kind of professional to contact to consult, and you still can't reach people at either state for UI questions. Luckily at least I can use VA to repay MD and still have a few pennies leftover and hopefully will be able to recover over payment of taxes somehow.

Please help.

This message has been edited. Last edited by: Skins2881,

My CPA has handled similar problems. Contact a CPA you trust in the area. It is an honest mistake but it is important to resolve it before the state gets involved.

First, $10200 of unemplyment is tax free for 2020 if your income is less than $150000. Your employer should have been filing your wages & paying unemployment taxes in VA & you should have been paid by VA. Since you did not receive VA unemployment I do not see the problem unless the MD weeks & VA weeks are duplicated for Federal PUA. You should get a 1099G from VA for 2020 & MD for 2021.

Nevermind guys, just spoke to my aunt. She's an CPA, she will figure out best course of action on taxes, and I'll figure out how to repay VA when the dust settles and they start answering phones again and try to file amended afterwards.

quote:

Originally posted by Anush:
First, $10200 of unemplyment is tax free for 2020 if your income is less than $150000. Your employer should have been filing your wages & paying unemployment taxes in VA & you should have been paid by VA. Since you did not receive VA unemployment I do not see the problem unless the MD weeks & VA weeks are duplicated for Federal PUA. You should get a 1099G from VA for 2020 & MD for 2021.

8 weeks in MD and 9.5 weeks in VA, so they mostly overlap. Our income was 150,100 in 2020, but the MD payments will be received some time in 2021, so no exclusion.