DianeW
Expert Alumni

State tax filing

Yes.  The state filing requirement is based on domicile.  If you live and work in Virginia (VA), then you must pay tax on the money you earn there.  If you file a resident return elsewhere because you are a student or otherwise living  temporarily living in VA, then you can get a credit in your resident state. Prepare the nonresident return first, then prepare the resident state return.

Resident State:  All income worldwide is required to be reported on your resident state return.  Any money that is also taxed in a nonresident state is eligible for the "credit for taxes paid to another state" when you complete your resident state return.  Your resident state does not want you to pay tax twice on the same income.

Nonresident State: Any money earned in a nonresident state is required to be reported on that state tax return (with the exception of reciprocal agreements).  The nonresident state will tax any income earned while you were in that state.  

  • Reciprocal states with VA: District of Columbia, Kentucky, Maryland, Pennsylvania, or West Virginia

The definition of reciprocal states is included below for your review.

https://ttlc.intuit.com/replies/3299954

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