I got rental income from another state, do I have to file income tax for that state?

[Jnramos4]

Thank you so much for all this information. My property is listed on Airbnb abs they submit taxes on my behalf. Are you saying I would need to submit monthly documentation aside from this? Would I also need to file a non resident tax return in FL and file a schedule C or E in CA?

[DawnC]

No, you don't need to submit monthly documentation.   And no on the Florida tax return as FL has no state income tax so there are no nonresident personal tax returns to file.   If you have a California based LLC, you would need to file a CA state return to report your CA rental income.   In the personal section of TurboTax, indicate that you earned income in multiple states.  

Every LLC that is doing business or organized in California must pay an annual tax of $800.   You will prepare the Schedule E or C on your federal return and TurboTax will transfer it to the appropriate state return(s).    @Jnramos4

[John357]

My primary residence is in IL and my rental property is in FL. 

Question: If my rental income is not taxable in FL why do I have to pay IL state tax on my rental income in FL?

Follow up question: If I paid state taxes on a rental income earned in a state that does have income tax but I paid less than I would've if the rental property was located in IL, do I need to pay the difference in IL?

[LeonardS]

Generally, when you have rental property located outside your resident state you pay tax to the state where the property is located and receive a credit from your resident state for the tax paid to the nonresident state.  If the credit received does not cover the tax on the rental property for your resident state you will be taxed for the difference.

In your situation, Florida does not have an income tax so you have not paid any tax to Florida on your rental income.  Therefore, you will not receive a tax credit from IL and all your rental income from Flordia will be taxed by IL

[John357]

Thank you for your clarification regarding my IL state tax obligation for rental income made on properties in other states.  

[John357]

If FL doesn't tax my rental income there and I'm a resident of IL, should I leave default "None" for "Other State Income" under Personal Info tab in TurboTax? 

[LeonardS]

Yes, you can leave the default "None" for "Other State Income" under the Personal Info tab.

[srinivas1985]

Hi, I live in CA and my rental property is in NJ. I filled in the schedule E and its reporting net loss.

Turbox Tax desktop didn't show up NJ as non-resident state to file the tax return for NJ state. I went ahead and filed the return for Federal and CA state. After reading this thread, i downloaded the NJ state (by paying additional 45$) but it doesn't show up as Non-resident state and doesn't pull the Schedule E details for the NJ state return. what should i now? 

[GeorgeM777]

To better understand the process you used to add NJ to your return, did you follow the below steps:

1. With your return open in TurboTax, select Online from the top menu, then Download State
2. Save your return when prompted
3. Follow the on-screen instructions to purchase (if necessary), download, and install your state
4. Repeat for additional state programs
5. When you finish Federal Taxes and move on to State Taxes, you'll see the state(s) you installed.

Given that the NJ return does not reflect that you are a non-resident, does your federal return continue to reflect that your are a CA resident? 

@srinivas1985

[srinivas1985]

It may be a bug in the product.  I filed my fed and CA state tax returns already.

What I did is go to my income and said done with income and then went to NJ state and it reflected as non-resident state. All good now. Thanks!  

[heyingh]

I am a NJ resident and have a rental property in Texas.  Is rental income taxable in Texas?  If yes, how do I report, which form will be used? 

Thanks,

[TomD8]

@heyingh --

Texas has no personal income tax.  So rental income earned by you as an individual is not taxed by Texas.  (Texas does impose a franchise tax on certain businesses such as S-Corps, LLC's, or LLP's, but any income that passes through to you personally is not taxed.)

Your rental income is of course fully taxable by your resident state of NJ, regardless of the rental property's location.

[heyingh]

Thanks, TomD8!

[owgrocgal7]

I am trying to do the IL income tax for this year.  Our IL income is about 18000 and we will owe income taxes as nonresidents of IL.  The program doesn't seem to be able to handle the new M form or the NR form??

[BillM223]

Please clarify what you mean by "doesn't seem to be able to handle" these forms. It is highly unlikely that TurboTax can't "handle" these forms.

Are you getting error messages, bad results, or what?

@owgrocgal7