My daughter lives in VA and has two jobs. One in VA and one in DC. She received a W-2 for each job and both have federal and state withholding.
after paying $40 to download the DC tax form, I got started. The first thing it said was that it recommended that I file the DC nonresident request for refund. I went through the process and then proceeded to complete the VA tax return. At the end, I noticed that it included a $29 penalty. It appears that this is due to filing all her income, VA/DC combined, through VA, and since her VA withholding was low, she was penalized.
Did a step get missed somewhere on the VA return to indicate the nonresident refund for DC?
Or is better [or is there even an option] to file each State return separately even though she lives in VA?
