Solved: Rental in Illinois, where taxpayer lives in Texas. Illinois tax return needed?

gfpstaxes · ‎12-07-2019

A Taxpayer lives and works in Texas, but owns a house she rents out in Illinois. Does she need to file an Illinois state return for that income?

itonewbie · ‎12-07-2019

Nonresidents are only required to file an Illinois NR return if there is enough income to generate a tax liability. This means that if your client has a net loss on the rental, IL return will not be required.

If there is a small amount of net income, you will need to run a calculation to determine if there is any IL taxable income after the small exemption allowance prorated for full-year as-if IL base income.

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Still an AllStar

View solution in original post

itonewbie · ‎12-07-2019

Nonresidents are only required to file an Illinois NR return if there is enough income to generate a tax liability. This means that if your client has a net loss on the rental, IL return will not be required.

If there is a small amount of net income, you will need to run a calculation to determine if there is any IL taxable income after the small exemption allowance prorated for full-year as-if IL base income.

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Still an AllStar

Just-Lisa-Now- · ‎12-07-2019

Non resident IL return will be filed to account for the income/expense at the IL rental property, yes.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Rental in Illinois, where taxpayer lives in Texas. Illinois tax return needed?

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