Hello,
I am doing my daughter's taxes. I live in Washington state. She is a full time student, so she is technically a Washington State resident. We have no state taxes here. However, she worked this past summer in Virginia. She made less than $5k. However, she did pay about $300 in federal tax and about $250 in state tax which she should get back.
The bizarre thing that I don't understand is that her W-2 has employer address in Virginia where she worked. Her personal address as stated on this W-2 is her physical address in the District of Columbia. Line 15 of this W-2 asking for "State" shows "DC". I am interpreting this to mean that her employer paid taxes to "DC" which seems strange to me. So, several questions:
1) Does she need to file a state income tax return for the District of Columbia (DC) or for Virginia? I would have thought that entering "DC" in box 15 of W-2 would help make this determination in TurboTax but it appears to be dictated by choice of state income in personal info section.
2) I know she is under income threshold limit for even having to file a state or federal return, but I am assuming that in order to get a refund of the taxes she paid, that she will need to file. Please verify.
3) There is a $45 additional fee for the ability to file a state return in TurboTax. Is there any way around this given circumstances described above? That's pure piracy when seeking refund of $250.
Thanks much.
Timoshenko
