I have rental property in illinois. I made 17,000 in profit. On my Federal Return I will pay taxes on the 17,000. Do I have to add the 17,000 on an Illinois tax as well

[bodhi24]

How to file Rental Property in Federal and State

[bdmclain]

Unless Illinois is different from Georgia, New Mexico and Florida, your rental income is taxable at the state level.  Where you must file a city tax, it is taxable there as well.

Turbo Tax should automatically add this to your state return, assuming you are filing your state return with Turbo Tax.

[Mike9241]

I'm an Illinois resident and it taxes you on rental property located here. evidently you are a non-resident so you would have to file an Il-1040 along with schedule NR. when going through TT it should ask you if you earned income in another state other than your resident state.  answer yes.  Illinois follows federal law as to determining taxable income from rental properties. 

[bodhi24]

Yes thank you, you are correct  I am from Illinois but live in Japan. Therefore I am a non-resident of Illinois. When I did my federal on Turbo tax, I put in my rental information and came up with the 17,000 rental income (minus expenses and taxes) which I will have to pay around 2000 in Fed taxes.  .

When doing State taxes on Turbo tax,  It asks me how much of the rental income should I apply to Illinois state. If I put 0 it remains as 0 taxes owed to Illinois. If I put in 17,000 in the state box it registers that I have to pay an additional 500 dollars to Illinois.  Therefore a total of 2000 to Fed and 500 to state.

I wonder If I am inputting correctly.  (It also says since if I am Non Illinois resident I can not deduct property taxes, Not sure if this is a new law this year)

Thank you so much for any insights and guidance

[bodhi24]

Yes Thank you so much for your info, very helpful. When I did my Fed taxes on Turbo Tax it did not automatically plug in the number to my State Tax on Turbo Tax. Wasn't sure if I did something wrong.