How do I appropriate a rental income on the state proper state return

[shf1957]

I have a client that lives in NYS and has rental properties in NY and also worked in MA.   I was doing her non residential return for MA as I am supposed to prior to NYS and it wants to tax her NYS property income as if she made that income in MA when it was NY.  I can not find an area that states to allocate it to the proper state.. PLEASE HELP.

[Camp1040]

Use the state allocation worksheets at the bottom of the federal information worksheet.

[shf1957]

I did but it only works for the w2's and interest .. but kept the rentals as the wrong state.. so i just over rode it and made it zero.. worse comes to  worse will have to do a mail in if it won't efile later on.

[abctax55]

I can't help with the how as I use Lacerte.... but to clarify, generally, the rental income will be taxed in the resident state as well as the state the property is located in. There may be credits back/forth between the states if the income is 'double taxed'.

[dkh]

If you complete Part XI of Federal Information Worksheet for Non Resident Filer then select the Quickzoom to the Nonresident State Allocation Worksheet - you should have a column for Federal and a column for MA.  Scroll down until you see the Schedule E allocation then enter zeroes.  

[shf1957]

Thank you but I probably didn't explain it right.  Resident of NYS, Lives in NYS, Apartment House is NYS, and is on NYS Retirement.  Due to everyone looking for workers, was offered a job in Mass until they find help..so she did commute.  As I see it, only the income from the w2 should be taxed in Mass, but ofcourse  it will also be taxed in NYS (with a credit of the taxes paid to MASS applied to NYS). The Rental income  should only be taxed in NYS.  I did go and appropriate all that belonged to Mass to Mass (w2) but the program still would not let me appropriate zero of the rental to MASS..so I had to override it to zero for Mass income. l just don't understand why it automatically made it as if it was MASS's income.

[shf1957]

Thank you  the program  would not allow me to put in zero until I over rode it and entered zero   I just didn't understand why it was automatically put in there where you couldn't alter it without over riding it.   So I did and if we have to do a mail in and it won't efile, I guess that's how we'd have to do it.    For sure, she is a NYS resident, the apartment house is in NYS  but she did travel to Mass and worked some for some extra money.  

[Camp1040]

When you indicate the source state on the NR allocation worksheet, that generally puts the numbers in the correct place. Note that I said generally. 

[Taxprohere]

Go to the Sch E worksheet for MA, there's a 'exclude from this return' checkbox.

[Taxes-by-Rocky]

Top of Schedule E-1.....

[WML]

For what it's worth (for next year), I use Proseries Basic Edition and was having the same problem. In order to access Schedule E-1 where there is a box to check to exclude the New York rental property, I had to right click on line 1 of Schedule E, "Rents Received", and select Cross Reference. Each rental property appears and you can then select the property to access Schedule E-1.