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Is there a tax rate on rental income that i can use to forcast how much i will owe the IRS?

I live in South Carolina and was thinking of renting out property, but I wanted to know how much I would have to save to pay the IRS on my rental income for the year.
2 Replies

Is there a tax rate on rental income that i can use to forcast how much i will owe the IRS?

If the property is depreciable you're more than likely to have a reported loss.  The tax rate on "rental income" is your ordinary income tax rate, whatever that might be.
IreneS
Intuit Alumni

Is there a tax rate on rental income that i can use to forcast how much i will owe the IRS?

Rental income is taxed as ordinary income, so the tax owed will depend on your tax bracket.

You can estimate what your 2017 taxes will be in TurboTax, following these steps:

  1. Click on Federal TaxesOther Tax Situations.  [In TT Self-Employed:  Personal > Other Tax Situations]
  2. In  the Other Tax Forms section, click on the Start/Revisit box next to Form W-4 and Estimated Taxes.  [See Screenshot #1, below.]
  3. On the Adjust How Much Tax You Pay screen, click the No box.  [This applies to withholding on your paycheck.]
  4. On the Review Your Estimates? screen, click the Review Now box.  [Screenshot #2]
  5. Continue through the screens, entering the requested information on your projected 2017 income.  There will be a column with the 2016 amounts for your reference.  You need to enter an amount for 2017. 
  6. You can enter your potential rental income as "Other Income and Losses."  [Screenshot #3]
  7. TurboTax will display a screen giving Your Estimated Tax Bill for 2017.  [Screenshot #4]  
  8. You will then be given the option to apply some of your 2016 refund to next year or to make estimated payments.

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