If I understand correctly, you worked in DC for the entire year.
- If that is correct you will owe taxes in DC for the entire year regardless of where you live.
- You would then owe taxes to VA for the time that you lived there.
- However, you should get a credit for taxes paid to another state on the Virginia tax return.
Your resident state (Now VA) taxes all income but gives a credit for income taxed by another state. Please carefully follow these directions.
You will need to prepare both DC and VA in a special order. You may need to delete both states and begin again.
- First, prepare your non-resident DC return. This creates your tax liability for the non-resident state.
- THEN prepare your resident state VA return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.
If you followed these steps and the credit is not showing, you may want to contact a specialist that can work through that section of the return with you.
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