As long as the SSN (yours) and the amount reported on the 1099-K are correct, the address on the 1099-K is not relevant to your tax return.
If you do not live in VA, you won't owe any tax to VA for the 1099-K income. You may want to contact the Payer (PayPal?) and ask them to update your address for future 1099-Ks.
