Rental in Illinois, where taxpayer lives in Texas. Illinois tax return needed?

[gfpstaxes]

A Taxpayer lives and works in Texas, but owns a house she rents out in Illinois. Does she need to file an Illinois state return for that income?

[itonewbie · Accepted solution]

Nonresidents are only required to file an Illinois NR return if there is enough income to generate a tax liability.  This means that if your client has a net loss on the rental, IL return will not be required.

If there is a small amount of net income, you will need to run a calculation to determine if there is any IL taxable income after the small exemption allowance prorated for full-year as-if IL base income.

[Just-Lisa-Now-]

Non resident IL return will be filed to account for the income/expense at the IL rental property, yes.