If I have net income of zero for rental property in Michigan when I live in Illinois. Do I still need to file non residential state income tax return in Michigan?

Forum|Forum|2 years ago
March 10, 2024
2 replies
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Schedule E on federal has net income as zero after deducting expenses from rental income.

TurboTax Online

DavidD66

Yes. If you live in Illinois and have a rental property in Michigan you need to file a non-resident Michigan tax return.

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jimopt31-comcastAuthor

Turbo Tax populated rental income in line 11 Other Income on Michigan Non Resident Tax Form which does not seem correct as thought it should only be reported in Line 6 with Schedule E income. Is it ok to make Line 11 zero and only includes the net rental income in Line 6?

jimopt31-comcastAuthor

Sorry meant to write Line 9 instead of Line 6.

DianeW777

Yes, as a nonresident, you must file a tax return if your rental income from Michigan (MI) is greater than the exemption allowance of $5,400. The fact that the income is zero or at a loss must show on the tax return why the income is zero. The filing requirement begins with the rental income.

If there is no rental income at all, then you do not need to file the MI return.

@jimopt31-comcast

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