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reality5
New Member

I have a rental property in another state, does it matter if I file tax in that state after my filing my own?

I mean if I have to pay tax on my rental income in my home state,  and pay tax in the state where the property located? Doesn't that mean paying tax twice? Or do I need to file it at the property located state first? and then in my state? I am confused. Does it make any difference? Please explain clearly. thank you.
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DDollar
Expert Alumni

I have a rental property in another state, does it matter if I file tax in that state after my filing my own?

You definitely need to file a tax return in the state where the rental property is located.  Your state of residence will give you a credit against the tax you pay on the rental income in the non-resident state. Therefore, you won't be double taxed on it.  When preparing your state tax returns in TurboTax, in most cases it is better to prepare the non-resident state first and then prepare your resident state tax return,

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1 Reply
DDollar
Expert Alumni

I have a rental property in another state, does it matter if I file tax in that state after my filing my own?

You definitely need to file a tax return in the state where the rental property is located.  Your state of residence will give you a credit against the tax you pay on the rental income in the non-resident state. Therefore, you won't be double taxed on it.  When preparing your state tax returns in TurboTax, in most cases it is better to prepare the non-resident state first and then prepare your resident state tax return,

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