State Taxes

SimonK — Wed, 30 Oct 2024 19:05:47 GMT

We live in NJ, and in 2024 I have earned via W2 in NY, my wife via W2 in NJ and now we also have a rental property in SC, which is under an LLC. Do we submit state taxes in all 3 states?

Re: State Taxes

Chslade — Thu, 31 Oct 2024 17:47:02 GMT

Yes, you would have to file 3 state tax returns.

You would report New York income on a non-resident New York state return. Which would include your New York only income.

https://www.nj.gov/treasury/taxation/njit23.shtml

Then New Jersey income on the New Jersey resident state return.

https://www.tax.ny.gov/pit/file/do_i_need_to_file.htm

South Carolina rental income on the non-resident South Carolina state return.

https://dor.sc.gov/tax/individual-income/faq

Re: State Taxes

SimonK — Wed, 30 Oct 2024 19:14:45 GMT

Thank you

Re: State Taxes

marctu — Wed, 30 Oct 2024 19:22:03 GMT

So you will clearly need to file taxes in your resident state of New Jersey, and since there is tax withholding you will also be filing a New York non-resident tax return. You will receive a credit for the taxes paid to New York on your New Jersey tax return.

That leaves South Carolina. The following all can be found here: Frequently asked questions

Do I need to file a South Carolina return?

If you are a nonresident or part-year resident, you are generally required to file a South Carolina return if you work in South Carolina or are receiving income from rental property, businesses, or other investments in South Carolina.

What are the filing requirements for a non-resident receiving income form South Carolina?

A nonresident individual receiving South Carolina income from wages, rental property, businesses, or other investments in South Carolina, must file an SC1040 South Carolina Individual Income Tax Return and Schedule NR Nonresident Schedule.

And last this:

A nonresident individual who has South Carolina rental property as an investment in South Carolina should file the SC1040 and attach a Schedule NR Nonresident Schedule. Rents received from the rental of real estate, less all related expenses, are allocated to South Carolina providing the property is not used in or connected with the taxpayer's trade or business.

So I would say that you will be filing in all three states, assuming the LLC is a disregarded entity for federal tax purposes. If it is a Partnership, you may still have a filing requirement in South Carolina with the K-1 having source income.

Thank you for the question @SimonK

All the best,

Marc T.

TurboTax Live Tax Expert

27 Years of Experience Helping Clients

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