I am a resident of PA with rental income from NY. Do I need to include the rental income in PA? How do I avoid double taxation with NY non-resident filing?

grega-vrhovec · ‎June 6, 2019

DanielV01 · ‎June 6, 2019

Yes, this is income reported to Pennsylvania also. But, Pennsylvania (and all states) have a mechanism to prevent double-taxation penalties. Pennsylvania will grant you a credit for the amount of tax you must pay to NY on your rental income in NY, up to the point that PA taxes the same income. For TurboTax to calculate this credit out correctly, be sure to prepare the NY nonresident return first. This way, TurboTax can accurately calculate the amount of credit PA should grant for the income generated in NY.

The following FAQ provides more information on this: https://ttlc.intuit.com/replies/3302052

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I am a resident of PA with rental income from NY. Do I need to include the rental income in PA? How do I avoid double taxation with NY non-resident filing?