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pisces28213
New Member

I am Retired and live in VA. I own rental property in NC. Do I file taxes/returns in both states?

 
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DS30
New Member

I am Retired and live in VA. I own rental property in NC. Do I file taxes/returns in both states?

It depends but if you have NC rental income and meet the NC state income tax filing requirements, then you will need to report this NC located rental property income on both an NC nonresident state income tax return and your VA resident state income tax return.

Since your are a resident of VA , you will need to report all income from all sources on both your federal and VA resident state income tax returns.

According to the NC Department of Revenue, if you are a nonresident, you must file in NC if:

  • you received income for the taxable year from North Carolina sources that was attributable to ownership of any interest in real or tangible personal property in the State or derived from a business, trade, profession, or occupation carried on in North Carolina, or is derived from gambling activities in this State and your total income from all sources both inside and outside the State, exceeds the amount for your filing status shown in the Filing Requirements Chart (screenshot)

You will want to work on your nonresident NC state income tax return first. You will then take a tax credit from your nonresident NC state income taxes on your resident VA state income tax return. (Please note that you will only get a tax credit for your NC state income taxes up to the amount of VA state income taxes that would have been paid if the income was earned in VA).  The credit for taxes paid to another state section will be at the end of your residence state's interview process.

Just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits to your resident states return

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

https://ttlc.intuit.com/replies/3300797


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1 Reply
DS30
New Member

I am Retired and live in VA. I own rental property in NC. Do I file taxes/returns in both states?

It depends but if you have NC rental income and meet the NC state income tax filing requirements, then you will need to report this NC located rental property income on both an NC nonresident state income tax return and your VA resident state income tax return.

Since your are a resident of VA , you will need to report all income from all sources on both your federal and VA resident state income tax returns.

According to the NC Department of Revenue, if you are a nonresident, you must file in NC if:

  • you received income for the taxable year from North Carolina sources that was attributable to ownership of any interest in real or tangible personal property in the State or derived from a business, trade, profession, or occupation carried on in North Carolina, or is derived from gambling activities in this State and your total income from all sources both inside and outside the State, exceeds the amount for your filing status shown in the Filing Requirements Chart (screenshot)

You will want to work on your nonresident NC state income tax return first. You will then take a tax credit from your nonresident NC state income taxes on your resident VA state income tax return. (Please note that you will only get a tax credit for your NC state income taxes up to the amount of VA state income taxes that would have been paid if the income was earned in VA).  The credit for taxes paid to another state section will be at the end of your residence state's interview process.

Just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits to your resident states return

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

https://ttlc.intuit.com/replies/3300797


View solution in original post

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