Yes, both residents and nonresident aliens should file returns anytime there is rental income, for federal and state income tax purposes.
With the limited information you have provided, my answer is based on the assumption you will be classified for U.S. tax purposes as a nonresident alien and requires you to report your rental property income on Form
1040NR, U.S. Nonresident Alien Income Tax Return.
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TurboTax does not support Form 1040NR.
The IRS provides a special provision for owners of real estate that allows nonresident aliens to “choose” to treat income from the property as “income effectively connected with a trade or business in the United States.”
- If you make this choice, you are not only allowed deductions attributable to the property, but are also taxed on your net income at graduated tax rates.
- To make this choice, you are required to attach a statement to your tax return or amended return for the year of choice which includes information regarding the property. Further details are provided in chapter 4 of IRS Publication 519, U.S. Tax Guide for Aliens.
