There’s many reasons why someone who’s unemployed might want to move to another state. Perhaps they’re changing occupations. Perhaps the cost of living is cheaper elsewhere. Perhaps they have faraway family. Perhaps the job market is better. Or maybe moving to another state is part of a lifestyle change they’re making to accommodate their change in life circumstance.
Many others, though, might want to move, and think they can’t, because they’re depending on their unemployment insurance payments from the state where they used to work. But depending on your personal situation, it’s possible to transfer unemployment to another state. Here’s how.
Changing your address with your unemployment claim
Let’s start with the assumption that you had one job, in one state, lost that job for an unemployment-eligible reason, and now want to move to another state. Typically, what will happen is that you will continue to draw unemployment from that state even after you move. After all, that’s where you worked, and where your employer paid into the unemployment system. There’s nothing shady about continuing to collect unemployment after you move to a different state, so long as you continue following that state’s reporting and job search requirements.
Generally, all you have to do is contact your state’s unemployment office – the same one where you filed your initial claim – and ask what form you need to fill out, such as a change of address form. It’s also a good idea to do this before you move. Doing it after you move could add several weeks to your eligibility for unemployment insurance benefits, according to Nolo.
Chances are, the information you need is right on the state unemployment agency’s website. There may be other requirements you also need to follow, such as registering in your new state to help you find a job there.
Take California, for example. “If you move out of California, you must actively look for work and register for job search assistance with the local employment office in your new state within 21 days of submitting your California unemployment application or you could be denied benefits.”
The same is true in Texas. “If you move out of state, you must register for work at a public workforce office in that state, unless you commute to work to Texas from a border state.”
So, in short, you still need to look for work, but there’s generally no problem with you moving to another state and continuing to collect unemployment.
Potential minefields
That said, you need to be careful. Some states are more picky than others about ensuring that you stay either where the wages were earned, or in a place where similar work is available. So you can’t necessarily move to a state that just doesn’t have your job, and then continue to claim unemployment because there’s no work there.
According to the United States Department of Labor Comparison of State Unemployment Laws, “Alabama, Michigan, Ohio, and South Carolina require that individuals be available for work in the locality where their base-period wages were earned, or in a locality where similar work is available or where suitable work is normally performed. Illinois and Utah consider individuals to be unavailable if, after separation from their most recent work, they move to and remain in a locality where opportunities for work are substantially less favorable than those in the locality they left.”
When you’re moving to your new state, keep in mind that unemployment insurance payments are generally considered taxable income, and your new state may have different tax policies than your previous one. And
also, think about how you receive your unemployment insurance benefit. If you receive it through direct deposit, for example, make sure that you have access to that bank account in your new state.
States typically calculate the size of your unemployment insurance benefit based on the amount you earned during a given period. What if you worked in several states during that period? You don’t have to file separately from each state. You can pick one state and ask it to combine the benefits into a single package. In most states — Mississippi, for example — that’s called a “combined wage claim.” “If you worked in more than one state you may be eligible for a Combined Wage Claim. The base period wages from all states in which you worked are combined and you may be able to establish a combined wage claim under the law of a single state to qualify for benefits.”
Finally, not all states will let you receive unemployment if you move to another state. In that case, you need to transfer your unemployment benefits to the new state. States belong to the Interstate Reciprocal Benefit Payment Plan, to which they all contribute, so even if you apply for unemployment benefits in your new state, your old state will be the one that’s paying them. However, it may take some time, so receiving unemployment directly from your original state is simpler if that’s available.
Here’s what you can’t do if you want to collect unemployment after moving to another state:
- It’s not a vacation. You still need to look for work and be available for work.
- Generally, you can’t leave the United States and its territories. (Some states, like Washington, will still pay unemployment insurance benefits if you move to Canada.) And remember that the unemployment insurance office can track you down even if you use a VPN.
- You can’t file for unemployment in your new state unless you’ve worked there and are eligible for it.
- You must abide by the limits – such as amounts and eligibility period – of your previous state, not your new one, even if the new one has better unemployment insurance benefits.
- Generally, you can’t just quit your job because you want to move to another state and claim unemployment benefits. However, there’s one big exception: If you’re quitting your job to follow your spouse to another state, whether because they have another job there, are in the military, or some other reason. This is called a “trailing spouse” benefit and it differs from state to state. If this situation applies to you, check with your state’s unemployment insurance office.
If you found this article helpful, you may find the below links useful as well!
How to Get a Refund for Taxes on Unemployment Benefits
Can You File Unemployment in Two States?
How to Settle an Unemployment Overpayment
