My wife and I are NY residents. We own a rental property in VA and 2021 net income from the property was around $17,000, but we have income from other sources, such as our W2. Our total adjusted income on Federal 1040 is above $100,000.
On VA Tax website, https://www.tax.virginia.gov/who-must-file, it says
Filing Status Income Threshold
| Single or married filing separately | $11,950 |
| Married filing jointly | $23,900 |
Is Virginia Adjusted Gross Income defined as income from Virginia source? If so, our income from Virginia source is less than $23,900, and it means we don't have to file any return with VA. Or is Virginia Adjusted Gross Income defined as Federal Adjusted Gross Income with some minor addition or subtraction that's specific to VA such as municipal bonds or 529 contributions. Since our Federal Adjusted Gross Income is so much higher, and we have no other business dealing in VA, if VAGI is defined as latter, then we will certainly exceed the $23,900 threshold.
