Skip to main content
March 25, 2023
Solved

1099 MISC and State Taxes

  • March 25, 2023
  • 1 reply
  • 0 views

My husband inherited property that is being rented out by a business.  The property is in Indiana and we live in Arizona.  We received a 1099 MISC form from the business but there were no state taxes withheld.  Do I need to complete an Indiana State Tax Return?  The recipient information on the 1099 MISC shows my husbands name and Arizona address.

Best answer by mglauner

Yes, if you own Rental Property in another state, file a Non-Resident State return to report the income shown on your 1099-Misc.  In the MY INFO section, indicate that you 'earned income in another state'. 

 

Prepare the Indiana Non-Resident return first, then your Arizona Resident return.

 

Arizona will tax all of your income, but give you a credit for tax paid (or owed) to Indiana.

 

Here's more info on How to File a Non-Resident State Return

 

@dcaniga1 

 

 

1 reply

mglaunerAnswer
March 25, 2023

Yes, if you own Rental Property in another state, file a Non-Resident State return to report the income shown on your 1099-Misc.  In the MY INFO section, indicate that you 'earned income in another state'. 

 

Prepare the Indiana Non-Resident return first, then your Arizona Resident return.

 

Arizona will tax all of your income, but give you a credit for tax paid (or owed) to Indiana.

 

Here's more info on How to File a Non-Resident State Return

 

@dcaniga1