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Level 2
April 9, 2021
Question

Multiple State Income Tax

  • April 9, 2021
  • 1 reply
  • 0 views

I receive royalty payments for mineral rights located in the State of Colorado, but the company who pays the royalty is located in Texas.  To which state do I file this income tax?

1 reply

Level 15
April 9, 2021

these royalties are taxable in your home state if it has an income tax and like rental property taxable in the state where the property is located if that state has an income tax.  so you need to file in Co if the income is over the filing threshold. 

Level 2
April 9, 2021

Thank you for your clear reply.  Yes I have filed for the income tax in my home state, but I also needed to determine where to file in the other state, Colorado where I have the mineral rights or Texas where the company that pays the royalty is located.