I'm trying to do our taxes on my own (I know, I'm crazy), and I'm not quite sure about this. We only claim the rental income in that state, correct? But we're actually claiming a loss, so will we just not owe anything?
Post by EmilieMadison on Feb 14, 2015 18:39:35 GMT -5
Eeeeeh, this is tricky. Just because you have a "loss" doesn't necessarily mean you dont owe anything. Do you use a management company? Did they send you anything? Are you depreciating anything? You need to report the income on the Schedule E of your Fed return, but your state returns might require something else. I'm not sure. Turbo Tax *should* ask you if you earned income in another state. You may have to claim it in BOTH states but it's possible you'll get a credit in your home state to offset it. But again, I'm not certain. For this year at least, you may need to have someone do it for you.
We did Turbo Tax. Our property management company sent us our year end statement. We just started last year so we had too many expenses and ended in a loss. We had to claim it in the other state, but we also lived there for most of the year. Next year I assume we have to pay taxes in the other state next year