Per the State of Virginia, a person who lives in Virginia, or maintains a place of abode here, for more than 183 days during the year, or who is a legal (domiciliary) resident of the Commonwealth, is considered an actual Virginia resident for income tax purposes. Since legitimate Virginia residency is established, the fact that you are moving back to California in 2023 is irrelevant. California will allow Virginia to be the primary to tax the income.
The reason California would allow Virginia to be primary is that most states (along with the IRS) have a specific definition of tax home and temporary. Temporary assignments generally have to be expected to last 1 year or less and usually have to actually last one year or less to qualify as temporary. Since you are stating that your Virginia assignment will last for more than one year, and you are meeting the Virginia definitions of an actual resident during that time (maintaining a residence of some sort in Virginia), your income would belong to Virginia.
Therefore, you can file for 2021, 2022, and 2023 in the following ways:
- 2021: Part-year resident of California and Part-year resident of Virginia
- 2022: Full-year resident of Virginia only
- 2023: Part-year resident of California and Part-year resident of Virginia (if you move back in 2023)
@stong
[Edited 3/8/2022 l 12:40 PM PST]
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