Question

in what state are royalities claimed

Forum|Forum|3 years ago
February 22, 2023
1 reply
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I live in one state and own property in another. This property earns royalities. Do I pay the taxes on the royalities in the state I live, the state the property is located, or both?

V

Vanessa A

This does partially depend on the state, but if you live in one state and earn royalties on a property in another state, you will generally claim the income on both state returns. You will file a non-resident return for the state that you own the property but do not live in and a resident return for the state you live in. You will file the non-resident return first, then claim a credit on your resident state for taxes paid to another state.

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