Using TT Premium, included out of state rental income but TT not suggesting filing a 2nd non-resident state return

[Jam772]

I have a rental property out of state (Maine) that generated income.  After input of all income and expenses it resulted in a small net income.  This is reported on sch E for Fed return and excluded from my primary state (MA).  After completing state review I expected TT to report that I would also need to file a second state return as a non resident for Maine where the income was generated but it did not.  Do I need to do it manually? 

Maine out of state income limit is $600 before having to file.  The gross income is much above that but the net after expenses is below that limit.  Is TT correct that I don't need to file the 2nd state as an out of state resident?

Thanks

[AmyC]

Maine non-residents must file if they have income from a Maine source resulting in a Maine income tax liability. If you do not have a Maine tax liability, you do not need to file Maine.

[Jam772]

Well I guess that's the question.  Maine will get a 1099-Misc indicating I earned a good deal of income, if I don't file a non-resident return showing the offsetting expenses that illustrates that ultimately no taxes are due, won't they send me a notice for not filing?

[KrisD15 · Accepted solution]

You can file a non-resident Maine State return and only claim the net income for that state. 

You can still file it even though you are not required to. 

A copy of your federal return is included, so they will see the Schedule E and your expenses for the rental income. 

You would have no tax due even if you don't file for Maine and they question the income, but filing would serve as a preventative measure.