ErnieS0
Expert Alumni

State tax filing

It depends. File a full-year Virginia return. We'd need more information to tell you how to file South Carolina.

 

Virginia

You are a full-resident of Virginia even though you moved to South Carolina because you spent more than 183 days in VA.

 

Virginia defines you as an "actual resident".

 

Individuals who are physically present in Virginia, or who maintain a place of abode here for more than 183 days during the taxable year are actual residents. The period of residency does not have to be consecutive days. 

 

It is possible to be an actual resident of Virginia and a domiciliary resident of another state.

 

Residency Status

 

South Carolina

Is your wife still in South Carolina? If you got a South Carolina driver's license, I assume you still maintain your residence there.

 

The IRS has a concept called a tax home, meaning your "home" for tax purposes is where you earn your money. Because your wife does not work and you went back to Virginia, you can file as a part-year South Carolina resident from March to August.

 

Virginia will double tax the same income so you can claim a credit on one of the state returns for tax paid to the other state.

 

South Carolina's tax rate is higher, so it's probably better to claim a credit on the SC return. However, if your employer has been withholding SC tax since March, claiming the credit on VA will reduce the amount you have to pay to VA.

 

If you plan to move back to VA, you can instead file a nonresident SC return and claim the other state tax credit on the VA return.

 

Maryland

Virginia and Maryland have reciprocity, meaning a resident of Virginia will not have to file a Maryland tax return if the only income comes from a W-2. The federal government should have withheld VA tax during the time you worked in Maryland. 

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