Question

If I earned royalties and paid tax in a second state do I need to file for that state?

Forum|Forum|6 years ago
June 1, 2019
3 replies
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I earned revenue/royalties from mineral/oil rights in a state in which I do not live or work. State tax was deducted from my royalties in the "other" state. Do I need to file taxes in that state as well as my resident state? Is there a benchmark earnings amount for filing in a second state?

TurboTax Home & Biz Windows

IsabellaG

Yes, you may have to file a tax return for that state, if your income meets the filing threshold. If you respond with the state, I can give you the Nonresident filing requirements.

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S

skalyomi

For my situation, I live in Florida and have nominal mineral royalties (less than $3k) from West Virginia and have paid the tax deducted from my royalties do I still need to file a West Virginia state tax return?

AmyC

Less than $3k sounds like more the $2k which means filing a return unless you meet an exception. WV Instructions page 17 states:

You are required to file a West Virginia return even though you may not be required to file a federal return if:

• Your West Virginia adjusted gross income is greater than your allowable deduction for personal exemptions ($2,000 per exemption, or $500 if you claim zero exemptions). Your income is to be determined as if you had been required to file a federal return. Your exemptions are to be determined following the rules on page 24.

• You are claiming a SCTC or HEPTC credit

• You are due a refund. You are not required to file a West Virginia return if you and your spouse are 65 or older and your total income is less than your exemption allowance plus the senior citizen modification. For example, $2,000 per exemption plus up to $8,000 of income received by each taxpayer who is 65 or older. However, if you are entitled to a refund you must file a return.

@skalyomi

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Anonymous

Can you let me know the rule for North Dakota?

LenaH

If you were a full-year nonresident of North Dakota for the 2021 tax year, you must file a 2021 North Dakota individual income tax return if both of the following apply:

You are required to file a 2021 federal individual income tax return.
You derived gross income from North Dakota sources during the 2021 tax year.

For a nonresident, “gross income from North Dakota sources” includes the income from tangible property in North Dakota, such as rents, oil and gas royalties, and gain from the sale or exchange of the property.

Form ND-1 Booklet

@4848226

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OLW

Live in Tx earn royalties in NM. Recd 1099misc tax doc from drilling Co with NM listed as state and the amount of taxes withheld. I’ve reported the 1099misc on my federal return but do I also need to file a tax return for NM?

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AnnetteB6

Yes, according to New Mexico Taxation and Revenue, if you are required to file a Federal return and you have income from a New Mexico source, then you are required to file a New Mexico return.

Take a look at the following website for more information:

Do I need to file?

@OLW

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Heidi Lancaster

If I live in California but earn mineral royalties for a property I own in Pennsylvania, do I have to file both a Ca. and a Pa State return. What is the minimum threshold of income for Pa?