ErnieS0
Expert Alumni

State tax filing

@habu72 Yes. Delete the credit. A resident of a state (or DC) is taxed on income earned anywhere. 

 

Absent of a reciprocal agreement, a resident who works in a different state would be taxed a second time by the work state meaning you would have to pay tax in VA and DC, but because DC has reciprocity, you only have to pay one tax – to the state where you lived (regardless of where the income was earned).

 

So pay tax to VA while a VA resident and DC tax while a DC resident. There is no overlap so there is no credit.

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