Question

Capital gains taxed by two states

Forum|Forum|4 years ago
April 5, 2022
1 reply
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My wife and I were part-time residents of DC (Jan 2021-May 2021) and full time residents of VA (May 2021-Dec 2021). I had capital gains on stock/crypto sales that occurred while living in DC. These gains are included in my Federal and DC return. They are also pulling into my VA return, thus showing a larger VA income. I have completed my non-resident (DC) return first and then VA, but it still pulls across to VA. Is this accurate or is there a way I can exclude the cap gains from being included/taxed by both states? When completing the VA return, I see a section where I can note income taxed by DC, but it also asks how much tax I have paid to DC. I don't see how I can make that calculation just for the cap gains. Any advice would be appreciated!

W

wbraden3

Employee

You were not a "full time" resident of VA. You lived in DC for part of the year and VA for part of the year. That might confuse the program.

You will still have to tell VA how much tax you paid to DC (and maybe vice versa). Tax paid to DC has already been entered with your W-2, unless you arranged for your broker to withhold part of your profits to pay tax to DC. Extra tax owed is shown in your program, which you will pay in 2022, but I don't know if VA wants only the tax paid in 2021.