Question

Rental Property in Texas but live in CA - why?

Forum|Forum|4 years ago
March 26, 2022
1 reply
0 views

Hello,

After I entered the income from the rental in TX, i noticed that I went from getting something from CA to now owing CA. Since this rental income is generated in Texas, why do I have to pay CA?

E

ErnieS0

California residents are taxed on income earned everywhere. Rental income from Texas is added to the total. The California income tax computation (like most states) starts with federal income, which includes everything.

Normally you can claim a credit for tax paid to another state. But Texas has no income tax so there is no credit for tax paid to another state.

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