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rmattson
Level 1

Grad Student Domiciliary Status, Reciprocity Between VA and MD

My son is a grad student at Virginia Tech.  His residence for tax purposes has always (so far) been MD.  He votes in MD, his DL is from MD, etc..  VA tax website says that if  a person spends more than 183 days in VA, then they are considered a resident.  He will have a campus job this coming school year (2021-22) and will earn approx $9,000.  Reviewing the VA-4 form which he must turn in  soon, it appears he will be able to claim exemption from tax withholding.   MD has tax reciprocity agreements with surrounding states, including VA.  MD Administrative Release #37 says "Maryland has reciprocal agreements with Pennsylvania, Virginia, West  Virginia, and the District of Columbia. Except for differences set forth in the agreements, nonresidents from these jurisdictions are exempt from taxation on the wages, salary, and other compensation for personal
services rendered in Maryland, and Maryland residents are exempt from taxation on wages, salary, and other compensation for personal services rendered in those jurisdictions. If the individual’s only income from the other state is from wages, salary, or other compensation for personal services rendered in the nonresident
jurisdiction, then the individual is not required to file an income tax return in that jurisdiction."

 

Release 37 then says:  "Except for West Virginia, the reciprocal agreements do not apply to individuals who are physically present in the nondomiciliary state for 183 days or more during the taxable year."

 

So, which State Income tax return does he file:  Virginia or Maryland?]

thanks for your help. 

2 Replies
Bsch4477
Level 15

Grad Student Domiciliary Status, Reciprocity Between VA and MD

If his only income is earned income of about $9,000 he would not have a filing requirement for federal or either state. 

Hal_Al
Level 15

Grad Student Domiciliary Status, Reciprocity Between VA and MD

"Students are subject to the same rules for residency and filing requirements as all other filers. For example, if you lived in Virginia for more than 183 days during the taxable year, you are classified as an actual resident, and must file Form 760 even if you maintained your legal residency in another state."


Q. So, which State Income tax return does he file:  Virginia or Maryland?

A. Both, if he has enough income to file.  MD will give him a credit, or partial credit, for any tax paid to VA.

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