Do I need to file the AR State tax for the state where my rental home is located?

[JeffDinTX]

 I am retired in and have always worked in TX but TT is listing my pension, earned totally in TX, as income on an AR state return where I only had rental income. TT has never asked me to fill out an AR state return in the past.

[TomD8 · Accepted solution]

Rental income from a property located in AR is taxable by AR, even if you're not an AR resident.  That's why TT is generating an AR tax return.

Pension income is taxable only by your state of residence at the time you receive it.

[JeffDinTX]

Thx, that makes sense. Anyone have an idea how I make TT quit putting my pension in the AR state tax return?

[JeffDinTX]

I kept plowing through the State return portion answering the question for each Int, Div, etc , what portion of this was earned while you lived in AR? I never lived in AR so all the answers were zero. TT could have asked me did I live in AR during any portion of 2018. That would have handled it much more simply. It came up with the right answer after all that and I owe nothing for the state return. Thanks for help I received.

[TomD8]

Be sure you indicated in the Personal Info section of TT that you had Other State Income from AR.  Then be sure  your RENTAL income appears on both the federal AND the non-resident AR return.  (Schedule E on the federal return.)

[JeffDinTX]

Thx. Another but related issue occurred to me. I don't know if this is a new AR regulation that TT implemented or something accidental. TT put every piece of my income on the AR state return even though NONE of it was generated in AR nor is it taxable in AR except the rental income. So, why should the state of AR see any of my income when it does not pertain to the state? I don't want to seem paranoid, but it really is none of their business. Does anyone know if AR has a new state regulation requiring to know (but not tax) every source of income a person has just because there is one source taxable by the state?

[TomD8]

Your total federal income will appear on your non-resident AR tax return because AR uses it in calculating your tax rate.  But it applies that rate only to your AR-source income.  This is no different than many, if not most, other states.

[JeffDinTX]

Thx very much, that clears up a lot of my confusion.

[kiran-cy-gmail-c]

Hi

Trying to check if this answer is true even today after the "Remote Work (Act 1019 of the General Session of 2021)"

Which states Remote workers who perform all of their duties from outside Arkansas, no income would be taxed.

If I've a rental property in Arkansas and I don't live in AR and haven't visited it even. Does this count as remote work income?

[TomD8]

"Does this count as remote work income?"

No.  Rental income from a property located in AR remains taxable by AR.  Rental income is not work income.