1099 MISC and State Taxes

dcaniga1 · ‎March 24, 2023

My husband inherited property that is being rented out by a business. The property is in Indiana and we live in Arizona. We received a 1099 MISC form from the business but there were no state taxes withheld. Do I need to complete an Indiana State Tax Return? The recipient information on the 1099 MISC shows my husbands name and Arizona address.

MarilynG1 · ‎March 24, 2023

Yes, if you own Rental Property in another state, file a Non-Resident State return to report the income shown on your 1099-Misc. In the MY INFO section, indicate that you 'earned income in another state'.

Prepare the Indiana Non-Resident return first, then your Arizona Resident return.

Arizona will tax all of your income, but give you a credit for tax paid (or owed) to Indiana.

Here's more info on How to File a Non-Resident State Return.

@dcaniga1

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MarilynG1 · ‎March 24, 2023

Yes, if you own Rental Property in another state, file a Non-Resident State return to report the income shown on your 1099-Misc. In the MY INFO section, indicate that you 'earned income in another state'.

Prepare the Indiana Non-Resident return first, then your Arizona Resident return.

Arizona will tax all of your income, but give you a credit for tax paid (or owed) to Indiana.

Here's more info on How to File a Non-Resident State Return.

@dcaniga1

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"