topic RENTAL INCOME FROM ANOTHER STATE in Deductions & credits

RENTAL INCOME FROM ANOTHER STATE

mommybearo — Sat, 14 Feb 2026 19:20:24 GMT

I have rental income in another state from where i reside. I pay state taxes on that income in the state that it incurs. shouldnt that income be deducted from my residence state taxes? I can't figure out where i would enter that as an adjustment.

Re: RENTAL INCOME FROM ANOTHER STATE

pk — Sat, 14 Feb 2026 19:33:21 GMT

@mommybearo , generally what should happen :

(a) you prepare the non-resident return, recognizing the rental income ( you have it on Schedule-E for your federal) and compute the taxes due thereon

(b) then you prepare the return for your resident state.

This should result in your resident state giving you a credit for taxes already paid to the non-resident state.

Is that what you have done ?

Re: RENTAL INCOME FROM ANOTHER STATE

mommybearo — Tue, 17 Feb 2026 13:57:34 GMT

I don't do my non resident state return on turbo tax, as turbo tax charges for an additional state return. is there a way to adjust my resident state return without doing the non resident return on turbo tax?

Re: RENTAL INCOME FROM ANOTHER STATE

pk — Tue, 17 Feb 2026 17:59:28 GMT

@mommybearo , generally you should be able to prepare the Non-Resident state in another software or by hand and then on your resident state exclude that income or the tax thereon. Can you tell me the resident and non-resident states and I can be more specific where to do the deduction/exclusion.

In my earlier life, I had CA and MI and I used to exclude the taxes paid to CA from MI as taxes paid to another state. California on the other hand allows to exclusion of income sourced to another state. Therefore need to know the states involved.

Re: RENTAL INCOME FROM ANOTHER STATE

mommybearo — Tue, 17 Feb 2026 18:15:35 GMT

RESIDENT STATE IS CALIFORNIA. NON RESIDENT STATE WITH RENTAL INCOME IS KANSAS.

Re: RENTAL INCOME FROM ANOTHER STATE

pk — Tue, 17 Feb 2026 18:26:15 GMT

@mommybearo , then I would prepare the KS return and then for the California show the out of state source of the income -- thereby no taxation from CA but no credits either.

I will try this scenario to make sure and come back later.

Re: RENTAL INCOME FROM ANOTHER STATE

mommybearo — Tue, 17 Feb 2026 21:04:56 GMT

My ks return wont be done thru turbo tax. Where would I enter the out of state income to be adjusted in my ca return? The only place I found under adjustments would be other income. Would that be ok?

Re: RENTAL INCOME FROM ANOTHER STATE

BillM223 — Fri, 20 Feb 2026 23:39:48 GMT

I am sure that pk meant "prepare the KS return" not through TurboTax, since you had already said that you were not doing that, but that you should just do your KS however, and then come back to TurboTax and start your California interview.

My test does not have a Schedule E (much less in another state) so I don't know if you will see a specific screen in the California interview about the Schedule E info (to allow you to adjust it), so it sounds like the Other Adjustments to Income is the right place to put it.