rjs
Level 15
Level 15

Get your taxes done using TurboTax

For the state where you got the 1099-S you definitely have to file a return. If you don't file they don't know that you had a loss. They will assume that the full proceeds on the 1099-S are taxable gain. I would file in the other state, too, for the same reason, even though you didn't get a 1099-S. You have to file to establish the loss.