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Level 15
Level 15

State tax filing

"Yes, I am living in Florida."


The question is what state you would be working in, not what state you live in. They're not necessarily the same. But I assume you mean that when you're not in Virginia you would be working remotely in Florida.


"So, if the company paid the llc, then I would still have to pay tax on the payments paid to the llc based on the days I worked in Virginia, is that correct?"


Yes, that's correct.


"Getting nit picky, what constitutes a day I work in Virginia?"


I don't think the Virginia Department of Taxation is going to be so nitpicky about it. I would consider any day that you show up in the office in Virginia to be a day worked in Virginia, even if you're not there the whole day. But checking email on a day that you are not otherwise in the office wouldn't count. However, if you're a W-2 employee, your employer is going to have to keep track of the days that your work in Virginia. You pretty much have to go along with their count, though you should keep your own count to check them.


You want to make sure the employer gets this right. The state wages on your W-2 should show only the amount for the days you worked in Virginia. If the W-2 shows all of your pay as Virginia wages you are going to have a problem. Talk to them about how they are going to handle this before you start the job. If they have not had this type of arrangement before, they might be unsure about how to handle it in their payroll system.


If you are a contractor your 1099-NEC will just show the total payments for the year. You will make the allocation on your Virginia nonresident tax return. In that case, you have to have your own record of how many days you worked in each state, to back up what you put on your tax return.

 

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