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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15201
Experience:  15years with H & R Block. Divisional leader, Instructor
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I was a New York State Resident for all of 2015 and was

Customer Question

I was a New York State Resident for all of 2015 and was employed by a New York State employer during 2015. I have three sources of income, namely, wage income, residential real estate rental income, and dividend income. My rental income is from a house I own in New Jersey and my dividend income is from a brokerage account I opened while a resident of New Jersey during 2014.
Do I have to file a New Jersey Non-Resident tax return? Why? How do I report the rental income on my New York State Resident tax return?
Submitted: 9 months ago.
Category: Tax
Expert:  Robin D. replied 9 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 9 months ago.

The why part of your question also addresses if you are required to file a NJ return.

Nonresidents who receive income from New Jersey sources (a rental property located in the state of NJ is NJ sourced income) and who have total income from all sources (both inside and outside New Jersey) that exceeds the filing threshold amount for their filing status must file a New Jersey nonresident income tax return. The filing threshold amount is $20,000 for those who file as married/CU couple filing joint return, head of household, or qualifying widow(er)/surviving CU partner. The threshold is $10,000 for those filing married/CU partner filing separately or single.

NJ will only tax you on the rental property if you do have a net income form the rental. Many rentals only generate losses so you may not have actual tax to pay but the requirement is there to report it by filing a nonresident return.

Your NY resident return just includes the rental and would allow for a tax credit if there is NJ tax to pay on income form the rental.

Your federal Schedule E will show you if you have income or loss on the rental. This is used to report for states.

If and when you rate in a positive way (look for the STARS or SMILEY FACES) I am credited with responding. It adds nothing to your costs but it assists me.

Customer: replied 9 months ago.
I do have a positive income on the rental. So do I have to file a non-resident NJ tax return and pay NJ tax?
Expert:  Robin D. replied 9 months ago.

Yes, you are required to file a NJ nonresident return. You will be liable for tax on the amount that is over your deductions and exemption for NJ.

NY will allow a credit though for that tax.

Expert:  Robin D. replied 9 months ago.

If you were a full-year or part-year resident of New York State and you had income sourced to and taxed by another state, a local government within another state, or the District of Columbia, you may claim a credit against your New York State tax.

This credit is allowable only for the portion of the tax that applies to income sourced to and taxed by the other taxing authority while you were a New York State resident. A Form IT-112-R is used.

Please let me know if you need clarification. If you do not then a positive 5 star rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)

Expert:  Robin D. replied 9 months ago.

Did that clarify your situation?

Expert:  Robin D. replied 9 months ago.

I am checking back to see if you needed further clarification about your rental position.