PA Schedule E taxes property income in another state

[TechGuy2]

Hello,

I have two two rental properties, one in PA another in SC.  The PA schedule E is taxing the SC property, even though I've clicked 'Property is not located in PA'.  This did not happen last year and appears to be a bug.  Anyone else seeing this?  Is there a workaround?  Thanks!

[TomD8]

Are you a resident of PA?  If so, PA can tax all your income, regardless of its source.

[TechGuy2]

Good question, sorry I didn't make that clear.  I'm non-resident with an investment property in PA.  In years past, TT only taxed the PA property, this year it is taxing both the PA and SC property.  I really think its a bug.  I'm not sure how to report it.  Thanks

[TomD8]

Unfortunately I don't have the TT Pennsylvania program on my computer (I'm not a TT employee), so I can't replicate your situation.  But it looks like PA wants you to allocate your rental income between PA and Non-PA on PA Schedule NRH, section II.

https://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Documents/pa-40nrh.pdf

[TechGuy2]

Thanks TomD8.  I received a TT update this morning, and it fixed the issue.

Seems like TT is listening here and the bug is fixed.  Thanks again.

[ustiger]

I live outside PA, I'm using Turbotax Premier. My PA Schedule E still taxes property income in another state. I have no way to remove. Thanks.

[MarilynG1]

In the Pennsylvania interview, look for a screen 'Rental and Royalty Property Summary'.

Continue to a screen 'Gross Receipts'.  Check the box indicating 'This rental is not taxable as a rental/royalty in PA'.

If you have more than one property not taxable in PA, you can check the corresponding boxes in the section of Schedule E below that.

@ustiger