We live in SC & purchased a house in GA this year. We rent this property. After filling out our expenses we made $0 income. Do we still need file a GA state tax return?

[Ramsdenn05]

If so, do I claim the amount we made or our net income on the tax form ($0)?

[DavidS127]

If you collected rents in Georgia, you have "Georgia-sourced income".  If so, and you are required to file a federal tax return, you are required to file a GA nonresident tax return.

When you prepare your federal return in TurboTax, that same rental property information is used to prepare your GA nonresident return and all the necessary forms.

[brianandkarena]

We live in SC and have been filing the GA return since we purchased the house in 2015,  but this year turbotax is separately my husband and my income.  It is telling me that I have to file separately under GA but I can still file jointly on my Federal return.  Our GA property does not make any income and therefore we do not owe any GA taxes, but we need to file a non resident return.  

Last year we filed married separately because the tax difference if we filed jointly.  I ran the numbers.    Is this why they are asking for us to separate the return?

[JohnB5677]

Did you ever rent the GA house?  You said you didn't rent it in 2019.  Do you get any income of any kind from GA?  Does your Personal Info say you live in GA?

If you've had no income, and you are both residents of SC.  I do not see any reason to file a GA tax return.

[Ramsdenn05]

Thank you for the response. When filing my GA return it pulls the numbers from my federal return resulting in a $0 income for our GA property. Do I change this number to the total amount collected for the rentals we had? Or do I leave this amount $0 since our expenses were more than the income we netted? 

[JamesG1]

Maybe I am misunderstanding. 

If your Federal tax return Schedule E for your rental property shows the following:

• Income                 $10,000
• Expense               $10,000
• Profit / Loss        $0

When you ‘change this number’, are you talking about the Income number ($10,000) or the Profit / Loss number ($0)?

I presume that the software is pulling the correct numbers to the GA tax return.  Are you seeing something different? 

[Ramsdenn05]

Yes, that is what the Federal Tax Return, Schedule E is showing $0 profit/loss. 

When I go and start my GA state taxes it goes through our incomes and asks to verify what amounts are correct for each state (SC and GA). When it shows the rental property income it shows $0. 

I guess I’m most confused as to why I would have to file income taxes in GA (and pay $40) when the income is shown as $0. 

[JamesG1]

Do not know whether you need to file with Georgia or not. 

Here are the filing requirements for Georgia. 

Please review and see whether your situation meets the requirements to file.