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Level 1
June 5, 2019
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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

  • June 5, 2019
  • 1 reply
  • 19 views

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.

Best answer by re2boys

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 reply

re2boysAnswer
Level 9
June 5, 2019

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.