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posted Jun 4, 2019 11:15:00 PM

Live in pa but paying NJ tax on rental property. Can I check box on PA return "this property is not taxable as a rental in pa" since I already am paying on NJ return

I am paying taxes on NJ state return for my passive rental income.  I am a full time resident of PA.  Can I check the box that the property is not taxable as rental/ royalty in PA on PA state return? Otherwise, it would seem like I am being double taxed.

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1 Best answer
Level 9
Jun 4, 2019 11:15:01 PM

No.

All income is taxable on a PA resident income tax return regardless of where it originates from.

However, you may claim a credit on your PA return for "taxes paid to another state".  Thus you get a credit for the NJ income taxes you may have paid on the rental activity.  Be sure the PA return contains a Schedule G and you should provide a copy of your NJ return with the PA return.

1 Replies
Level 9
Jun 4, 2019 11:15:01 PM

No.

All income is taxable on a PA resident income tax return regardless of where it originates from.

However, you may claim a credit on your PA return for "taxes paid to another state".  Thus you get a credit for the NJ income taxes you may have paid on the rental activity.  Be sure the PA return contains a Schedule G and you should provide a copy of your NJ return with the PA return.