How to I claim a one time income from another state?

[clsumm123]

I have a hay lease in TN at our second home, but file in Florida at our primary residence

[SantinoD · Accepted solution]

Since this income is from another state, make sure to answer "Yes" in TurboTax, "Did you earn income in another state?". This will prompt the program to ask additional questions about which state the income is from. Since Tennessee doesn't have State Income Tax, you will not be required to file a Tennessee tax return. 

For Federal, if you merely rent out your land to farmers and do not materially participate in the labor or management of the farming process yourself, you are considered a landowner, not a farmer, according to the IRS. Form 4835 is the way for non-participating farmland owners to report their farm income and expenses.

To enter your Farm income, follow these steps:

1. Open or continue your return
2. Search for farm income and select the Jump to link in the search results

TurboTax can help guide you to ensure you are reporting your Non-Farmer income accurately. 

Check out this article for more info: What is Form 4835: Farm Rental Income and Expenses