DMarkM1
Expert Alumni

Investors & landlords

If the rental income ($0) is all the IL income you have then you do not have a filing requirement in IL.  Here is the IL reference (extract below).  Your IL Schedule NR line 46 amount would be zero.  The amount ($0) that transfers over is correct.  Once you actually have IL income the amount will transfer automatically from your federal return.  In fact everything needed with regards to the rental income will automatically transfer to the IL return.  

 

Bottom line is when your IL return does not show a tax liability you do not have an IL filing requirement.  

 

For future years:  If your IL rental property income is zero or less you do not have an IL filing requirement.  If the property generates income (after losses applied) then complete an IL nonresident return and file it and pay if there is a tax liability and don't file it if there is not a tax liability.     

 

"a nonresident must file Form IL-1040 and Schedule NR if

  • you earned enough taxable income from Illinois sources to have a tax liability ( i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50), or
  • you want a refund of any Illinois Income Tax withheld in error. You must attach a letter of explanation from your employer."
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