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February 23, 2020
Question

We live in DC but W2 indicated state tax paid for DC and VA. When I filled out the DC form, credit for VA was given. Must I file a VA return?

  • February 23, 2020
  • 1 reply
  • 0 views
Turbo tax says I must attach the VA return to the DC return.  Will VA tax me or is there a simple "pass through" aspect where they send the money to DC.  Company my wife works for is located around the world including in VA, but she works and lives in DC.

1 reply

DavidS127
February 23, 2020

You do not need to file a Virginia (VA) state income tax return to pay taxes if all of the following are true:

  • you commute daily to work in VA (if this does not include telecommute, you aren't taxed in VA anyway, because VA doesn't tax telecommuters from other states);
  • you had no "place of abode" in VA at any time during the year;
  • your only VA income is salary and wages, and 
  • your salary and wages are taxed by DC.

If you meet those requirements, instead of filing a VA income tax return, you can pay taxes to DC on all your income (but without the credit for taxes paid to VA).

 

When you prepare your VA nonresident return, make the selection that you are only filing to receive a refund of taxes withheld.  TurboTax will generate the VA Form 763-S, Virginia Special Nonresident Claim for Individual Income Tax Withheld to claim a refund of your VA taxes paid.

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