Nonresident with rental income less than $13,825 in 2023: do I need to file MN return? Do I need to pay estimated tax?

[Elina G]

I am a US nonresident (Canadian) and I own a vacation home in MN. I want to rent this property short term, and my rental income will be less than minium filing requirements for MN ($13,825 in 2023). 

1. Do I need to file MN nonresident return? 

2. Do I need to pay estimated tax if I didn't have any tax liability in prior years in MN? 

Federal tax:

1. Do I need to complete IRS Form W-8ECI - Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States? (I don't want withholding tax to be applied to my gross rent). 

2. In addition to 1040 NR and schedule E, do I need to attach a declaration about  my election to file on a net rental basis? 

Thank you.

[tagteam]

I'll page @AmeliesUncle for the MN question.

[AmeliesUncle · Accepted solution]

The $13,825 is your GROSS income (total rent BEFORE deductions).  If your gross MN income is under that, you do not need to file a MN return.

If you will not owe any MN income tax, you don't need to make MN Estimated Tax payments.

For the Federal tax, yes, you would give the Form W-8ECI to the company that is handling the rentals  (AirBnB or whatever else).

Yes, you will need to attach a statement to your tax return.

The US version of TurboTax is not able to file tax returns for a person who is not a US Citizen or US Resident, so you will likely want to go to a tax professional that is experienced with that type of situation.