I made over $2000 in rental income in a nonresident state, but it was completely offset by expenses and deductions. Do I actually need to file a state return?

[deathtoll2001]

Home state: WA (no income tax)
nonresident state: NY
Gross rental income: $15900
Final value is a net loss after including all expenses, depreciation, deductions, etc. (property taxes are sooooo ridiculous).

[Carl]

Yes, you need to file the return. Otherwise, the state will assume all rental income is profit and expect you to pay taxes on it.

[deathtoll2001]

Lame.  OK, thanks!