TeresaM
Expert Alumni

Get your taxes done using TurboTax

If you meet the filing requirements for each state or you want a refund of withholding, you will need to file both states.

If you are a resident of Virginia, and the work was done in Virginia, generally the state where the work was performed will tax the wages. If this is the case you may need to file the Delaware return for the refund of the withholding. You can request your payroll department to only withhold for Virginia going forward.

If you lived in Virginia, and traveled to Delaware and performed the services there, then Delaware will tax those wages but Virginia may give you credit for taxes paid to another state, so you are not double taxed on the same money.  In the federal part of the return, in My Info, you will want to answer "yes" to the question, Did you make money in any other states?  This will set up questions in the state returns.

If you physically worked in Virginia and also in Delaware, you may owe some taxes to each.

You will want to prepare your non-resident return first, Delaware, then your resident return, Virginia. In this way, the Virginia return will be able to see the taxes paid for Delaware. You will have an allotment section in both returns, where you can designate what portion of your federal income should be allotted to which state.

Delaware will allow you to itemize on a state return even if the federal return uses a standard deduction.


 

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