I would like to remove indiana state tax, and am not sure if i should?

[rikkachey]

I own a house there, but didn't receive as much rent as the mortgage (ie. a loss) however, do i still need to file indiana state tax? if not, how do i remove it from my taxes? thanks!

[AmandaR1 · Accepted solution]

Typically, since you received rental income in Indiana, you need to file a non-resident return there for your rental income. However, the state has a special calculation for determining if you need to file. Take the number of exemptions on your federal return times $1,000 and if the income you received is greater than this amount, then you must file in the state.

This means if you're single, you'd have one exemption, $1,000. If you're married, you'd have two exemptions, $2,000. If you're married with two dependent children, then you'd have four exemptions $4,000.

To determine if you're below the threshold to file, you can apply the states instructions, here: http://www.in.gov/dor/4731.htm