Hi, hoping you can help. I currently live in Rhode Island but per rules I had to file an unemployment claim in North Carolina as I only moved to RI last fall. It seems state taxes are not being deducted from my claim payout.
The form NC sent only allows for me to have NC taxes taken out. However, I don't live in NC and I think I owe RI the state taxes as I have lived here since the payments started. Is that correct?
I called the NC UI office and really didn't get anywhere – in fact the person on the phone tried to tell me NC does not have a state tax. I hurried off the phone after that and will call again.
This won't apply to my 2026 return, as I only started receiving payments in 2026. But I'll want to budget to pay the tax bill. It seems NC will issue me a 1099-G but either no state taxes will appear as deducted or they will to the wrong state (I can't get an itemized stub of payments).
What do you think? Thanks !
Unemployment benefits – state taxes – claim in another state – UI office not helpful…
byu/Grapecat34 intax
Posted by Grapecat34
1 Comment
Unemployment is taxed by North Carolina. File as a nonresident. Rhode Island will give you a credit for tax paid to North Carolina.