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January 23, 2020
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I have a rental property in NC. I am a permanent PA resident according to the military. I pay PA state taxes. Turbotax is putting my rental property in both.

  • January 23, 2020
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Best answer by AmyC

 

Turbo Tax is correct, the property does go on both state returns. The rental home must go on NC return since it is clearly NC income. Because PA is your home of record, it will tax your NC income and give you a credit against the tax you paid in NC for the rental property.

 

The important thing is the credit PA is giving you for the NC tax you paid.

1 reply

AmyC
AmyCAnswer
Employee
January 23, 2020

 

Turbo Tax is correct, the property does go on both state returns. The rental home must go on NC return since it is clearly NC income. Because PA is your home of record, it will tax your NC income and give you a credit against the tax you paid in NC for the rental property.

 

The important thing is the credit PA is giving you for the NC tax you paid.

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