Skip to main content
January 28, 2025
Question

DC versus Virginia

  • January 28, 2025
  • 1 reply
  • 0 views

I live in DC but worked in VA.   My W2 shows that VA state taxes were taken out.  No DC taxes were taken out.  What state tax returns do I need to file?  I expect that I would get a refund for the money taken out in VA.

1 reply

January 28, 2025

You would need to file a DC resident return and you can file a Virginia nonresident return.  DC and Virginia are reciprocal states, which means you can file an pay taxes in your resident state if you work in a reciprocal state.  

 

Unfortunately, your employer withheld for Virginia instead of DC.  If you have not already done so, inform your employer to withhold DC instead of Virginia.  

 

For 2024, you have two options:

1. You can file a Virginia nonresident return, pay the tax to Virginia, then take a credit for taxes paid to another state on your DC return.  

2. You can file the Virginia return and claim no Virginia income, in which case you will receive a refund for the withholding.  You can then file the DC return and pay the income tax to DC, but you will have to pay the tax before the due date and wait for Virginia to refund (which should be okay because it is early in the tax season).   Virginia also has a form 763-S that you can complete instead of the tax return but you must send it in and generally it takes a little longer for the refund. (If you do this you do not have to pay for another state tax prep fee)

 

Please post of you have additional questions.