I got rental income from another state, do I have to file income tax for that state?

[DS30]

Yes, if you have net rental income from a rental property located outside your home state, you will need to file a nonresident state income tax return in that other state (if you meet that nonresident states minimum filing requirements). This even applies to states with reciprocal agreements. (These reciprocal agreement do not cover rental income.)

You will also need to include this income on your resident state income tax return. You will get a state tax credit in your home state for any nonresident state taxes paid on income that is being taxed in both your resident and nonresident states.

You can add a state under the state taxes tab.

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

[Jt23]

What if you have a net loss on the property? example: my gross profit was 19K but my expenses total 26K resulting in a net loss. Do I still need to fill a return with the state the home is in? 

[JamesG1]

Yes, in most states you would be required to file a tax return for gross income of $19,000 generated on rental property in the state.

[Jt23]

Thanks for clarifying. Follow up - despite grossing over $19K, should I expect to pay taxes to that state despite a net rental loss? For example - the state is MI and their asking for $800 on a $6000 net loss.  

[RobertG]

In most cases you would not have to pay tax on a net loss on a State return.

When you file a nonresident MI return, you report all of your income, even income earned out of State.  

You then allocate your income between MI income and other State Income.

Check your MI return to see if your out of state income has been allocated as out of state income.

@Jt23

[ren12]

Hi Robert, (@RobertG)

Does Turbotax offer the option of doing non-resident state tax returns if we have rental income in state(s) that we don't work/live in?

Thanks.

[MaryK4]

Yes, in the My Info section, there is a question "Did you make money in any other state?" (Other State Income) but if you missed it, you can always add in the State section (Add Another State)

@ren12

[Carl]

do I have to file income tax for that state?

Only if that state taxes personal income. For example, Florida does not tax personal income. So if your rental property is located in FL, you have nothing to report to that state concerning your rental income.

[imobrn]

I am finding the same thing in Michigan. I have a loss of $9000 but including that loss reduced my refund by several hundred from Michigan.  If I just put the income in with no loss, I get a refund of considerably more. Can't understand that!! I live in Michigan but the rental property with a loss is in Florida. 

Also, why does Turbo Tax want me to download a Florida State tax form for $44.00 when I live in Michigan and Florida doesn't collect state taxes?

[foams]

Hello RobertG,

I had a similar situation filing a non-resident IL return for rental property I own in that state. However, since there was a net loss, the IL tax return that TurboTax creates does not pick up the rental activity. So neither gross income nor net loss (to be carried forward) is captured in the IL-1040 or the supplemental forms. 

How do I fix this?

[RobertG]

You don't need to fix it.  Illinois law follows federal law concerning passive activity income and losses.  

Your loss will be captured on the federal side and will pass through to the Illinois return when you prepare next year's taxes.

[mpgargione]

Hi!! This is our first year living in New Jersey (we lived in DE for 17 years) and we have two rental properties in Delaware. I already filed our taxes with TurboTax and just realize nothing was done for Delaware. Do I need to amend my return? Both properties operate as a loss. One is a second home/rental. Thanks so much! 

[Carl]

the rental property with a loss is in Florida.

Florida does not tax personal income and never has. YOu do not need to file a state tax return with the state of Florida, since no such form exists for doing so for the state of Florida.

[jordonez93]

Hello,

I have a similar situation as above.  I just bought an investment home that I will use as short term rental property in Nevada. Nevada has no state income tax, and I currently live in West Virginia.  The property will likely get a net loss this year as it will need to be set up and have some remodeling to do. When I file taxes for 2020, will the net loss in Nevada affect my taxes in West Virginia? 

Do I or should I create an LLC for this property? Since the property will be operated and incur monthly expenses in Nevada even though I live in West Virginia would I need to file for LLC in Nevada or West Virginia?