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February 6, 2025
Question

I earned farm income in arkansas but I owe a lot of taxes in virginia. I ma a nonresident in Arkansas and a resident in virginia

  • February 6, 2025
  • 1 reply
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I sold a farm in arkansas and filed a nonresident return for arkansas and a resident return in virginia but the virginia return shows a large tax liability why

    1 reply

    February 6, 2025

    If you filed as a non-resident in Arkansas then your income from Arkansas sources may not have been taxed by Arkansas.  If it was not then Virginia would be taxing it.  

     

    When you did your returns you need to make sure that you did the Arkansas non-resident return first and then the Virginia resident return second.  That way the Arkansas return captures anything due for Arkansas and the Virginia return will give you credit for taxes paid to Arkansas.  If you did the returns out of order delete both state returns and re-do them both with the non-resident return first and then the resident return after.

     

    @bogaev1960 

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