I have a vacation rental property in NJ but am a PA resident. TurboTax is not giving me a credit in PA tax for the tax paid to NJ. How can I get a PA Sch G-L?

[ThomasM125]

You should see a screen that says Credit for Tax paid to Another State in your Pennsylvania portion of your TurboTax program, you need to work through that section:

You will see it in the Taxes and Credits section of your PA return when you review it:

 

[cebs215]

Thanks.  Unfortunately, I am using TurboTax online version.  When I do the entries in there, it tells me that my credit is zero.  I have looked at a draft of my tax return, and it is clear that TurboTax is not processing it correctly.  I am wondering if there is something else that I need to be doing.

[DanielV01]

@cebs215  There might be something else you need to do.  In the PA return, there is a section where you have to make that income taxable in PA.  Once you click on that box, the tax credit should calculate.

Remember, too that you can only get a credit if you actually pay tax to the other state.  If you have no NJ tax to pay, then there won't be any credit either.  We can't see your screen to know exactly what you are seeing, but these are a couple of possibilities.

[cebs215]

Thanks, I appreciate your reply.  Unfortunately, I do see the box that says "This property is not taxable as a rental/royalty in PA".  I have been sure to not check that box, since as you noted, it should be taxable, but ultimately, the NJ tax amount should be offset in PA.  I do owe in NJ based solely on the rental income, so there should be a credit.  When I inserted "dummy numbers" to generate a form G-L, it shows it as not coming up as subject to tax in PA.  Is there somewhere other than the "Gross Receipts" section I should note that it is taxable?

[ErnieS0]

Check your entries on Taxes Paid to Other States Summary. New Jersey and Pennsylvania has a reciprocal agreement on wage income which is why TurboTax may be confusing.

• Go to Pennsylvania
• In Taxes Paid to Other States Summary click Edit if New Jersey is showing. Otherwise select +Add Another State
• Say NO on Type of Income Taxed by NEW JERSEY
• On Any Double-Taxed Income from New Jersey, your rental income should show up under Rents, Royalties, Patents, Copyrights. Otherwise enter your rental income.
• At the bottom, enter Tax Due to New Jersey on income above, if no amount is listed.
• You should see a credit on Taxes Paid to Other States Summary