If you receive rental income from a state that you do not live in, are you supposed to pay taxes attributable to that state? I was told no. Nonresident Schedule PN to fill out. Column A tells you to include all income from all sources. Things like wages, salaries, taxable interest, taxable dividends, alimony, real estate rental etc. There is an associated Column B that says "amount of Column A attributable to state" Since that client does not live in that state, they have 0 for wages, salaries, taxable interest etc. They only get rental income. Let's say total annual rental income is $10,000 from all real estate rental income. Let's say amount of real estate rental income for this particular state is $4,000.
So would Column B be 0 or $4,000? I can't imagine client pays nonresidence taxable 40% of their AGI, then multiplied by that state income tax %, as tax due if they only had rental income.
